Charlotte, NC Comprehensive Neighborhood Improvement

Charlotte, NC Comprehensive Neighborhood Improvement Program Rozzelles Ferry/West Trade Street Market Analysis & Project Strategy Brief Addendum to Look Book and Report prepared by Stantec

March 2015

Turning Point Comprehensive Neighborhood Improvement Program (CNIP) Academy

West Trade/Rozzelles Ferry Road Neighborhood

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Parcels Streams ©2015Building by FootprintsCity of Charlotte,Park Property Rose & Associates Southeast, Inc. and Stantec. Text and all photos, images and dataContour by Lines Rose AssociatesImpervious Surface unless otherwise noted. Reproduction in its entirety only, permitted with credit in print. The conclusions and recommendations set forth are based upon information provided

byLast Revised: public Tuesday, December records, 9, 2014 municipal officials, business owners, market and demographic data obtained by Rose & Associates Southeast, Inc. Neither an appraisal nor title search was performed for the Study Area or any specific property in preparing this report. While the information included herein is believed to be accurate, no warranty or representation, expressed or implied, is made as to the information contained herein, and is submitted subject to omission, change of market conditions, or other factors outside the scope of this report or the author’s control.

Study Area & Context Rose and Associates was retained by Stantec on behalf of the city of Charlotte to evaluate the market and economic dynamics of the northwest neighborhoods surrounding West Trade Street and Rozzelles Ferry Road, as part of the Comprehensive Neighborhood Improvement Program (CNIP). The study area encompasses an area totaling approximately six square miles to include twelve Neighborhood Profile Areas (NPA) and four business corridors, including Freedom Drive, Wilkinson Boulevard, Rozzelles Ferry Road and West Trade Street. Contained in our analysis is the initial data collection area (herein after collectively referred to as the “study area”), which is the area of influence that incorporates those NPAs impacted by investment in the west-end area of the City.

Turning Point Comprehensive Neighborhood Improvement Program (CNIP) Academy

West Trade/Rozzelles Ferry Road Neighborhood

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Last Revised: Tuesday, December 9, 2014

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 22 Study Area & Context

A combination of methodologies is utilized in developing our findings and recommendations. The analysis and forecasting of market data, comprising demographic and population estimates together with economic and employment estimates, is both art and science. All market research analysis begins with US Census Bureau data – which has limitations as to both accuracy and timeliness. Nonetheless, the data provide a benchmark as much for a retrospective look as a prospective one. Four factors must be considered when looking exclusively at such data: 1) the role of economic drivers that are a departure from past trends; 2) growth from primary centers spilling over into outlying areas; 3) constraints due to physical barriers; and 4) availability of land physically and legally suited for development. Included is our analysis, observations and recommendations to assist in identifying projects that will contribute to the transformation of this culturally and historically rich area and help to ensure its sustainability for future generations.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 33 Executive Summary

Executive Summary

Charlotte ranks second among the fastest-growing large cities in the United States, according to the most recent data released by the U.S. Census Bureau. The CNIP study area at Rozzelles Ferry/West Trade Street is already changing. Housing is being upgraded, streets are being improved, and Johnson C. Smith University, a historic black college, is an activist partner in changing the environment around its campus. Mecklenburg county’s adaptive reuse of the old Freedom Mall is a substantial positive change, the Stewart Creek greenway and multiple parks have been established throughout the area, industrial and business enterprises are providing jobs, and business corridors are showing early signs of new vitality. This is an area of great history and great opportunity. The market is a story of reconnecting and repositioning: fitting in the missing pieces of the puzzle, completing projects, closing gaps and maximizing the existing infrastructure investment that has already been made, rather than starting over or adding any substantial inventory. There is much to celebrate and there is much to be done to ensure this area’s long range success. The report can be summarized by a simple concept and five guiding principles:

IF Center City is the heart of Charlotte… The West End is its Soul

• Preserve the historical housing stock and provide additional housing options for multiple generations. • Celebrate the rich heritage and culture of Charlotte’s African-American community through connecting historical and cultural assets, and consolidating and strengthening existing corridors. • Connect the neighborhoods to the commercial corridors by completing infrastructure projects, completing/expanding greenway connections, opening cul-de-sacs, and expanding transportation options. • Reposition retail and industrial developments with renovation and/or adaptive reuse for the 21st Century. • Inspire education and entrepreneurship to create job opportunities and small local businesses, supporting economic mobility to stabilize real estate markets and providing community health and wellness.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 44 2.1 Executive Summary

Subsumed within these concepts are the following findings regarding the real estate market and key areas where transformation is possible:

• Housing - The success of housing in the study area is dependent upon two primary factors: transportation and education. Therefore, the proposed Gold Line and Trolley projects, as well as greenway and sidewalk infrastructure will have an impact on accessibility to goods and services. There are opportunities to stabilize, rehabilitate and preserve the existing single family housing stock – through public private initiatives and programs, including the expansion of historic districts. Increasing the stability of owner-occupied homes would improve property values, allow Baby Boomers and Seniors to age in place, and strengthen the commercial corridors. There are also opportunities to further diversify multifamily housing that will provide alternative choices that match the needs and wants of today’s Millennials and aging Baby Boomers. These include the redevelopment of Tarleton Hills under a Choice Neighborhood Implementation program, the adaptive reuse of the Savona Mills project, and the development of vacant parcels and redevelopment of existing properties along the Freedom Drive and Rozzelles Ferry corridors. Much of the housing gap in the short term will be filled with the housing proposed or under construction in the Bryant Park and West Trade areas. Together these will provide over 350 single family and multifamily homes to meet the gap of 700 – 1400 housing units over the next 5-10 years.

• Retail - There are opportunities for automotive sales and service, sports and sporting goods, clothing and grocery uses, albeit limited. There is an opportunity for a small neighborhood grocery to fill the underserved market. This is most prominent in the West Trade corridor, where no existing quality food options exist. Current demand is primarily being met by discount/convenience stores. In addition to a traditional neighborhood grocery in the Five Points area, a cluster of sports themed shops: sporting goods stores and restaurants around a central core or urban park could be considered in a location that is fitting for a regional destination. Freedom Drive is such a destination, as a thoroughfare connecting two major interstates to each other and to the Center City. Such a themed center with specialty retailers could separate and define a destination apart from the larger national discount chain stores prevalent along the Freedom Drive corridor in the past. This center could be further enhanced with a flexible hardscape which would be used for parking and/or gathering space for outdoor markets, events or entertainment. This is also an opportunity to re-create a place that connects and incorporates the history and culture of the African American community that is dominant in this area – which should be celebrated. The redevelopment and repositioning of the existing retail will reinvigorate the void of up to 300,000 – 400,000 square feet of retail, restaurant and entertainment space that could be created over the next 5-10 years.

• Industrial - Small to mid-size companies have the best potential for use of older properties, which provide low cost space options near the interstates and provide employment opportunities for neighborhood residents. Clusters include automotive supply and repair; distribution and light manufacturing. Some buildings may also be suitable for re-purposing for different uses such as breweries, senior housing, rental housing, small business incubation/education space and other uses. Primary candidates include the Savona Mill, Greenway Business Park and the existing buildings along lower Freedom Drive and planned Thrift St/Berry Hill roundabout. This includes the repositioning of the Goodwill facilities. Together these would provide the 100,000 – 200,000 square feet anticipated over the next 5-10 years.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 55 2.1 Executive Summary

Other factors to consider include transforming these areas by leveraging public projects with private investment, and activating these places with people:

• Education – As noted throughout the report, partnerships are key to achieving the six stated goals of the Community Investment Plan. This includes Johnson C. Smith University, Central Piedmont Community College, Charlotte Mecklenburg Schools, and a host of existing educators within the community.

• Tourism – Connecting the arts, cultural and entertainment assets and opportunities will create a destination and place for inviting visitors. These might include a Black History & Heritage Trail from West Trade to Rozzelles Ferry and Tuckaseegee, and Sports and entertainment connections bridging Center City and Freedom Drive. Connecting heritage, culture, sports and the arts would create synergy that could bring a small boutique hotel to JSCU and put the west side on the map as a destination for visitors.

• Implementation – The most productive way to encourage private investment is to reduce risk. There is an existing robust infrastructure within the study area. However, consideration should be given to providing a comprehensive package of existing tools and/or programs, as well as small area plans to understand the goals of land use for developers and investors. This, together with the “can do” attitude that is the hallmark of the region, will provide greater opportunities for public-private partnership.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 66 Planning Cycle 1 – Data Immersion

Planning Cycle 1 – Data Immersion

We began with a look at current reality; that is, the economic, demographic and social elements that make up the community and the study area. Second, we identified the key assets and interviewed key stakeholders to determine critical economic areas for development and key themes that would provide the greatest impact for investment.

Based upon our findings during our work in Planning Cycles 1 and 2, we identified opportunities and potential projects, subject to revision during our continued work with the community and the team in Cycles 2 and 3.

1.0 Data Collection & Site Tour We reviewed a large collection of plans, reports and data provided by or compiled by the City. This included the ULI Corridor study, the West End plan, and the Estimated Development Potential around CityLynx Gold Line Phase I and II Transit Stations. Further, we collected and reviewed data from other sources including the County and Urban Institute (Quality of Life Study), the Bureau of Labor Statistics, The US Census, and the North Carolina Employment Security Commission, as well as proprietary data from ESRI.

The market team conducted two tours of the study area to identify existing assets, understand the transportation network, and evaluate the current conditions of housing and commercial development. After completing a physical and photographic inventory, we set about understanding the people who live, work and pass through the study area.

Our tour revealed a variety of characteristics in the study area that present both challenges and opportunities.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 77 Planning Cycle 1 – Data Immersion

1.1 Locational & Asset Analysis The West Trade/Rozzelles Ferry study area is located northwest of center city (downtown) Charlotte. It is bordered by Interstates 85 and 77, and Highway 16 (Brookshire Boulevard), which provide both multiple access points and physical barriers to the study area. It includes four primary business corridors: West Trade Street, Rozzelles Ferry Road, Freedom Drive and Wilkinson Boulevard. These are auto-dominant corridors, which include regular CATS bus service. The Goldline CityLynx streetcar extensions have recently been approved by City Council which will add additional transportation options to the area, serving and connecting Johnson C. Smith University to the center city and Johnson & Wales University. The area is also in close proximity to Charlotte Douglas International Airport and its edge at Wilkinson Boulevard is a major corridor which serves the airport and related airport operations.CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

TheThe three three major major highways highways that that run run through through or along thethe boundaries boundaries of of the the study study area area:: I-77 I-77 to tothe the east, east, NC 16 to the NC16north, to the and north, I-85 to and the I-85 west to, include the west, a total include of eight a total full orof partialeight full interchanges or partial interchangesas shown on Table as shown 2 below. Highways on Table 2 below. Highways present both challenges and opportunities. They may bisect present both challenges and opportunities. They may bisect neighborhoods and negatively impact attractiveness and neighborhoods and negatively impact attractiveness and walkability, but they also provide visibility walkability, but they also provide visibility and access to support businesses that rely on them. and access to support businesses that rely on them. Locational Analysis Map

I-85 & Rt. 16

I-85 & Glenwood Drive

I-77 & Rt. 16 I-85 & Freedom Drive

I-85 & Tuckaseegee Road I-77 & West Trade St.

I-77 & W. Morehead St.

I-77, I-277 & Wilkinson Blvd.

RozzellesTwo Ferry/West large anchors Trade Streetprovide Charlotte, employment NC • Rose and& Associates economic Southeast, activity Inc. in this area: Johnson C. Smith University and88 the Valerie C. Woodard County Social Service Offices (formerly Freedom Mall). The primary land use is low density, single family homes in well-established neighborhoods, followed by civic and institutional uses. There are 288 acres of park, greenway and open space, and 375 acres of vacant parcels ripe for future development. In addition there are commercial/retail operations along the business corridors and a number of underutilized assets (vacant or under- developed), such as the former Kmart Center on Freedom Drive between Camp Greene and Alleghany Streets.

The study area also includes 12 Neighborhood Profile Areas (NPA) which further define the study area and are the subject of the bi-annual Quality of Life study compiled by the County in association with the UNCC Urban Institute. The Quality of Life study is done every two years with the new edition passed in January of 2015 for rollout. Consequently, at this time the primary source for descriptive data is the 2012 Quality of Life Study. The basic geographical unit used in the Quality of Life study is denoted as the Neighborhood Profile Area (NPA), which is most closely associated with census 9

Planning Cycle 1 – Data Immersion

Two large anchors provide employmentCNIP and – economic Rozzelles activityFerry/West in this Trade area: Market Johnson Analysis C. Smith Summary Brief University and the Valerie C. Woodard County Social Service Offices (formerly Freedom Mall). The primary land useblock is low data. density, The NPAs single are family not coterminous homes in well-establishedwith generally accepted neighborhoods, neighborhood followed boundaries; by however, neighborhood civic and institutionalnames uses.that are There most are closely 288 acresassociated of park, with greenway the NPAs andwill beopen used space, in the and following 375 acres sections of of this report. vacant parcels ripe for future development. In addition, there are commercial/retail operations along the business corridorsThe NPAs and that a number are within of orunderutilized influenced by assets the West (vacant Trade/Rozzelles or under-developed), Ferry Road suchCNIP studyas the area are as follows: former Kmart Center on Freedom Drive between Camp Greene and Alleghany Streets. The study area alsoNPA includes 12 Neighborhood Neighborhood Profile Areas (NPA) which further define the study area and are the subject 5 of the bi-annual Enderly Quality Park of Life study compiled by the City and County in association with 6the UNCC Urban Enderly Institute. Park The Quality of Life study is done every two years with the 2014 edition ready 51 for rollout in early Wesley 2015. Heights Consequently, at the time of this study the primary source for descriptive 70 data is the 2012 University Quality Park of Life Study. The basic geographical unit used in the 85 Washington Heights Quality of Life study is denoted as the Neighborhood Profile Area (NPA), which is most closely 88 Lakewood associated with census block data. The NPAs are not coterminous with generally accepted 124 Ashley Park and West Boulevard neighborhood boundaries; however, neighborhood names that are most closely associated with the 292 Smallwood NPAs will be used in the followingCNIP – Rozzelles sections Ferry/West of this report. Trade Market Analysis Summary Brief 293 Enderly Park 347 Seversville Theblock NPAs data. that The are361 NPAs within are or not influenced coterminous Ashley Parkby with the generallyWest Trade/Rozzelles accepted neighborhood Ferry Road boundaries; CNIP study however, area are neighborhood asnames follows: that are382 most closely associated Biddleville with the NPAs will be used in the following sections of this report.

The NPAs that are within or influenced by the West Trade/Rozzelles Ferry Road CNIP study area are as follows:

NPA Neighborhood 5 Enderly Park 6 Enderly Park 51 Wesley Heights 70 University Park 85 Washington Heights 88 Lakewood 124 Ashley Park and West Boulevard 292 Smallwood 293 Enderly Park 347 Seversville 361 Ashley Park 382 Biddleville

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 99

Planning Cycle 1 – Data Immersion

CNIPCNIP – Rozzelles – Rozzelles Ferry/West Ferry/West Trade Trade Market Market Analysis Analysis Summary Summary Brief Brief

1.2 Neighborhood1.21.2 NeighborhoodNeighborhood Assets Assets Assets The neighborhood’s assets can be grouped into five categories: The Theneighborhood’s neighborhood’s assets assets can canbe grouped be grouped into into five fivecategories: categories:

SchoolsSchools & University & University SocialSocial & Service & Service Organiz Organizationsations Ashley Ashley Park Park PreK PreK-8 School-8 School (Project (Project Lift Lift Bette Bette Rae RaeThomas Thomas Center Center o o o o school)school) o oMecklenburg Mecklenburg Bar BarCenter Center (under (under o oAristotle Aristotle Preparatory Preparatory Academy Academy constructionconstruction at Rozzelles at Rozzelles & Zebulon) & Zebulon) o oWesterly Westerly Hills Hills Elementary Elementary o oNeighborhood Neighborhood Business Business Services Services (City) (City) o oAngels Angels Christian Christian Academy Academy o oBoys Boys & Girls & Girls Club Club o oCharacter Character Builders Builders Christian Christian Academy Academy o oValerie Valerie C. Woodard C. Woodard (County (County DSS) DSS) o oInvest Invest Collegiate Collegiate o oYMCA YMCA o oBruns Bruns Academy Academy (Project (Project Lift school)Lift school) o oHerbert Herbert Spaugh Spaugh Middle Middle School School o oJCSU JCSU charter charter school school (under (under construction)construction) ConnectionConnections & Transportations & Transportation o oHardi Hardingng University University High High I-77,I- I77,-85, I -I85,-485 I- 485 o oStewart Stewart Creek Creek High High School School (proposed) (proposed) o o ArteriesArteries - Brookshire, - Brookshire, Rozzelles Rozzelles Ferry, Ferry, o oPhilip Philip O. Berry O. Berry Academy Academy of Technology of Technology o o FreedomFreedom Drive Drive o oCPCC CPCC City CityView View – Cosmetology – Cosmetology Johnson Johnson C. Smith C. Smith University University Ci tyLynxCityLynx Gold Gold Line Line Streetcar Streetcar extension extension o o o o o oRailroad Railroad (freight) (freight) CATS CATS Bus Busservice service o o o oCharlotte Charlotte Douglas Douglas & CSX & CSXintermodal intermodal ParksParks & Greenways & Greenways centerscenters

o oCamp Camp Green Green (former (former WW WW I military I military campcamp – includes – includes Dowd Dowd Historic Historic House) House) o oBryant Bryant Park Park

o oEnderly Enderly Neighborhood Neighborhood Park Park HistoricHistoric & Cultural & Cultural o oSeversville Seversville Neighborhood Neighborhood Park Park Martin Martin Luther Luther King King Community Community Park Park o oWesley Wesley Heights Heights – Historic – Historic District District o o Grand Grand Theatre Theatre – Historic – Historic Property Property o oFive Five Points Points Neighborhood Neighborhood Park Park o o Frazier Frazier Neighborhood Neighborhood Park Park o oBiddle Biddle Hall Hall(JCSU (JCSU campus) campus) – Historic – Historic Property Property o o Stewart Stewart Creek Creek Greenway Greenway o oGeorge George Davis Davis House House – Historic – Historic Property Property o o JCSU JCSU Arts Arts Factory Factory o oHoskins Hoskins Neighborhood Neighborhood Park Park (on (on o o periphery)periphery) o oLatibah Latibah Collard Collard Green Green Museum Museum

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 1010 11 11

Planning Cycle 1 – Data Immersion CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

1.3 Demographic & Economic Analysis 1.3 Demographic & Economic Analysis The basic element of any market-driven plan is the demographic makeup of the community, past trends and future The basic element of any market-driven plan is the demographic makeup of the community, past potential growth or contraction. The City of Charlotte, where the CNIP study area is located, was compared to the trends and future potential growth or contraction. The City of Charlotte, where the CNIP study area is region, state and the nation. This includes both Mecklenburg County and the Charlotte Metropolitan Statistical Area located, was compared to the region, state and the nation. This includes both Mecklenburg County and (MSA), which it also serves. The data in this analysis include 2010 US Census data and/or 2014 ESRI estimates which the Charlotte Metropolitan Statistical Area (MSA), which it also serves. The data in this analysis include utilize national census data with local updates, North Carolina state data and other regional/local resources. Data are also compiled2010 US Censusfrom the data City and/or and other 2014 state ESRI and estimates federal sources. which utilize Also included national is census data from data each with Neighborhood local updates, Profile Area North(NPA) withinCarolina the state study data area and boundaries, other regional/local which together, resources. assist in Data determining are also compiled projects that from would the City benefit and most from otherCIP infrastructure state and federal investment. sources. Also included are data from each Neighborhood Profile Area (NPA) within the study area boundaries, which together, assist in determining projects that would benefit A reviewmost of from the demog CIP infrastructureraphic profile investment. of the study and data collection areas, as compared to other geographies from the macro to micro level, revealed that the population within the study area overall is: A review of the demographic profile of the study and data collection areas, as compared to other geographies Predominately from African-American; the macro to micro level, revealed that the population within the study area overall is:  Multigenerational, but skewing toward young millennials; • Predominately African-American;  Low in household income and educational achievement; • Multigenerational, but skewing toward young millennials;  High in unemployment; • Low in household income and educational achievement; • PredominantlyHigh in unemployment; renters; • MorePredominantly reliant on public renters; transportation than is typical for the City as a whole. • More reliant on public transportation than is typical for the City as a whole. Table 3

NC-MSA-County-City-CNIP Comparisons North MSA Mecklenburg City of W Trade/ (2012 Data) Carolina County Charlotte Rozzelles Ferry Population Growth (2012–2017 annual rate) 1.21% 1.70% 1.77% 1.74% N/A Median Household Income $42,900 $52,110 $54,401 $52,033 $28,875 Median Household Income: < $50,000 56.1% 47.6% 45.3% 47.7% 76.0% Median Household Income: $50,000 + 43.9% 52.4% 54.7% 52.3% 24.0% Owner Occupied Housing 56.5% 59.3% 53.8% 50.2% 40.0% Renter Occupied Housing 30.0% 31.9% 37.5% 41.1% 50.4% Vacant Housing 13.5% 8.8% 8.7% 8.8% 9.6% Median Age 37.5 35.5 34.0 33.3 31.0 Sources: ESRI Comparison Report, City of Charlotte, Rose Associates.

In additionIn addition to comparison to comparison to the largerto the geographieslarger geographies and the andother the CNIP other areas CNIP of the areas city, of the the demographic city, the and economic data demographicwas reviewed forand each economic NPA within data the were initial reviewed data collection for each area NPA to within provide the an initial understanding data collection of which area to neighborhoodsprovide an have understanding the highest priorityof which with neighborhoods regard to housing, have social the highest and civic priority services. with The regard table tobelow housing, provides some social and civic services. The table below provides some insight into the market findings and project insight into the market findings and project recommendations. recommendations.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 1111

CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

Planning Cycle 1 – Data Immersion CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

Median % on Food Black White Hispanic Median Household & Nutrition Adults w/o Violent Property NPA Name NPA Population Population Population Age Income Svcs HS Diploma Crimes Crimes University Park 70 96.4% 1.9% 1.2% 52 $40,000 35.9% 25.9%Median 1,841 % on Food 13,851 Washington Heights 85 93.8% 1.7% 2.0% Black 27 $27,563White Hispanic54.1% Median 22.0%Household 1,452 & Nutrition 7,873Adults w/o Violent Property Smallwood 292 NPA Name84.0% 3.0%NPA 2.9% Population 28 Population$19,881 Population49.7%Age 37.9%Income 1,473 Svcs 6,538HS Diploma Crimes Crimes Biddleville 382 University83.6% Park 7.5%70 8.5% 96.4% 24 $21,159 1.9% 1.2%29.8% 52 37.8%$40,000 1,086 35.9% 4,598 25.9% 1,841 13,851 Washington Heights 85 Lakewood 88 82.8% 5.4% 1.9% 93.8% 37 $27,143 1.7% 2.0%50.3% 27 35.7%$27,563 1,438 54.1% 6,684 22.0% 1,452 7,873 Smallwood 292 84.0% 3.0% 2.9% 28 $19,881 49.7% 37.9% 1,473 6,538 Enderly Park 5 83.9% 9.6% 2.7% 22 $32,679 61.0% 38.3% 2,156 7,297 Biddleville 382 83.6% 7.5% 8.5% 24 $21,159 29.8% 37.8% 1,086 4,598 Enderly Park 293 Lakewood91.2% 7.8%88 2.1% 82.8% 33 $14,369 5.4% 1.9%54.6% 37 37.1%$27,143 1,926 50.3% 9,216 35.7% 1,438 6,684 Seversville 347 Enderly83.1% Park 11.0%5 3.7% 83.9% 30 $30,714 9.6% 2.7%48.5% 22 9.8%$32,679 1,356 61.0% 8,305 38.3% 2,156 7,297 Wesley Heights 51 Enderly44.8% Park 49.6%293 1.9% 91.2% 41 $41,375 7.8% 2.1%12.0% 33 10.9%$14,369 578 54.6% 5,367 37.1% 1,926 9,216 Ashley Park 361 Seversville84.0% 11.7%347 2.4% 83.1% 39 $23,686 11.0% 3.7%51.8% 30 57.1%$30,714 3,823 48.5% 15,594 9.8% 1,356 8,305 Enderly Park 6 Wesley79.3% Heights 16.3%51 3.8% 44.8% 27 $21,158 49.6% 1.9%54.0% 41 19.5%$41,375 2,747 12.0% 9,219 10.9% 578 5,367 Ashley Park & West Blvd 124 Ashley68.5% Park 20.8%361 6.2% 84.0% 45 $29,424 11.7% 2.4%40.5% 39 25.8%$23,686 1,935 51.8% 37,922 57.1% 3,823 15,594 Enderly Park 6 79.3% 16.3% 3.8% 27 $21,158 54.0% 19.5% 2,747 9,219 County Average Ashley32.0% Park & West Blvd 55.0%124 12.0% 68.5% 35 $61,973 20.8% 6.2%17.0% 45 12.0%$29,424 515 40.5% 4,436 25.8% 1,935 37,922 Source: Quality of Life study, 2012 County Average 32.0% 55.0% 12.0% 35 $61,973 17.0% 12.0% 515 4,436 Source: Quality of Life study, 2012 Concerns and perceptions regarding crime in the study area may negatively impact the market. However, the presence of the Metro sub-station and jointConcernsConcerns efforts andby and Cityperceptions perceptions staff have regarding demonstrated regarding crime incrime the an studyimproving in the area study may trend areanegatively from may 2012, impactnegatively when the market.the impact last However, the market. the presence Quality of Life Study was completed.However,of the More Metro thed etailedsub-station presence data and ofregarding jointthe Metroefforts each sub-stationby NPA City staffwill behave and released demonstrated joint effortswith the an by 2015improving City Quality staff trend ofhave from demonstrated 2012, when the an last Quality of Life Study was completed. More detailed data regarding each NPA will be released with the 2015 Quality of Life Study update: improving trend from 2012, when the last Quality of Life Study was completed. More detailed data regardingLife Study update: each NPA will be released with the 2015 Quality of Life Study update:

Crime Rate Trends - CMPD ReportingCrime Rate Trends% Change - CMPD Reporting % Change Area Area 2013 - 2014 2013 - 2014 Ashley Park Ashley Park -19.2% -19.2% Bryant Park* Bryant Park* 22.0% 22.0% Camp Greene* Camp Greene*18.8% 18.8% Eleanor Heights* Eleanor Heights*70.6% 70.6% Enderly Park Enderly Park -2.4% -2.4% Glenwood* 10.0% Glenwood* 10.0% Lakewood -6.8% Lakewood Parkview -6.8% -32.8% Parkview Seversville -32.8% -21.8% Seversville Smallwood/Biddleville-21.8% -17.6% Smallwood/Biddleville Overall Average-17.6% -1.80% Overall Average * increases attributable-1.80% to Non- * increases attributable to Non-Violent/Property Crime (only) Violent/Property Crime (only)

Source: CMPD

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 1212 Planning Cycle 1 – Data Immersion

CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

Generational Cohort TheGenerational age distribution Cohort of the study area can best be defined by generation, which defines age, socioeconomic and lifestyle characteristics. The study area is dominated by Millennials, followed by The age distribution of the study area can best be defined by generation, which defines age, socioeconomic and lifestyle Digitals (youth/children) and Baby Boomers, suggesting a substantial number of multi-generational households.characteristics. The Thetable study below area compares is dominated the five by Millennials, CNIP study followed areas: by Digitals (youth/children) and Baby Boomers, suggesting a substantial number of multi-generational households.

35% 30% Digitals (< 20) 25% 20% Millennials (20 to 35) 15% 10% Gen X (36 to 47) 5% 0% Baby Boomers (48 to 66) Silent Generation (67 to 75) G.I. Generation (76+)

Generational Cohort Table. Source: Charmeck Initial Data Collection Area

Educational Attainment Educational Attainment TheThe working working population population ageage 25+ by educational attainment attainment provides provides insight insight into into household household income income and andskills of the skillslocal of labor the local force. labor This force.is important This is not important only for notfinancial only forstability, financial but for stability, attracting but businessfor attracting and entrepreneurship business as andwell. entrepreneurship There is much discussion as well. There nationally is much around discussion the “creative nationally class” aroundand the theeconomic “creative impacts class” of and business the and economicactivity regardless impacts ofof businesseducational and attainment. activity regardless The discussion of educational balances attainment.cultural and lifestyleThe discussion amenities balances often described culturalin place- andmak lifestyleing, with amenities business oftenand entrepreneurial described in place-making, activities to create with and business expand and a direct entrepreneurial economic impact. This activitiesdebate oftento create takes and center expand stage a directin areas economic where there impact. is imbalance This debate between often quality takes centerof life, occupationalstage in areas skills and whereemployment there is imbalanceopportunities. between This can quality be addressed of life, occupational through partnership skills and with employment local education opportunities. institutions This and canorganizations. be addressed through partnership with local education institutions and organizations.

TheThe statistics statistics in in the the study study area illustrate thethe challengeschallenges in in this this area, area, particularly particularly around around education. education. Without additional Withouteducation additional and occupational education opportunity, and occupational financial opportunity, security will continuefinancial to security elude a largewill continuepercentage to ofelude the populationa largeand percentagenegatively impact of the housing population and commercialand negatively real impactestate within housing the andstudy commercial area. The recently real estate formed within Economic theMobility study area.Task ForceThe recently will explore formed why Economicthe City of CharlotteMobility Taskranked Force last amongwill explore the country’s why the 50 City largest of Charlotte cities when it rankedcomes last to providingamong the opportunities country’s 50 for largest the poor cities to lift when themselves it comes out to of providing poverty. Theopportunities work of this for task the force poor will be toimportant lift themselves as it relates out of to poverty. this CNIP The study work area. of this task force will be important as it relates to this CNIP study area.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 1313

Planning Cycle 1 – Data Immersion

CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

50% 45% 40% 35% 30% 25% 20% 15% No Diploma or GED 10% 5% 0% Bachelor's Degree or Higher

Educational Attainment Table. Source: Charmeck Initial Data Collection Area

ThThisis area area of of the the City City has has historically historically been ofbeen relatively of relatively low wealth, low withwealth, the workingwith the adults working in blue adults collar in jobs blue that collar at one timejobs includedthat at one significant time included local employment significant in manufacturing local employment enterprises. in Themanufacturing area still has enterprises.some manufacturing The area jobs, still buthas most some of manufacturing the jobs are now injobs, distribution, but most warehousing of the jobs and are servicenow in occupations. distribution, Educational warehousing attainment and service is clearly oneoccupations. of the primary Educational deficits for attainmentthis area, with is 25% clearly of adults one ofhaving the primaryno high school deficits diploma for .this At thearea, same with time, 25% the of adults existinghaving educationalno high school infrastructure diploma. in thisAt the part same of Charlotte time, theand existingMecklenburg educational County is infrastructurerobust. The area in has this a University, part of JohnsonCharlotte C. Smith,and Mecklenburg and a branch ofCounty Central is Piedmont robust. CommunityThe area has College, a University, a Cosmetology Johnson School. C. Smith,Other institutions and a branch of higherof Central education Piedmont are easily Community accessible includingCollege, Johnson a Cosmetology & Wales University School. Otherjust across institutions I-77, other of universities higher education in the Centerare easily City accessibleand numerous including branches Johnson of Central & Piedmont Wales University Community just College across around I-77, the other region universities. in the Center City and numerous branches of Central Piedmont Community College around the region. Two Charlotte-Mecklenburg High Schools are in the study area (Philip O. Berry Academy of Technology and West CharlotteTwo Charlotte-Mecklenburg High School). Additionally, High Harding, Schools West are Mecklenburg in the study and area Olympic (Philip High O. SchoolsBerry Academy are nearby. of The Technology area also hasand its West complement Charlotte of HighElementary School). and MiddleAdditionally, Schools. Harding, Some of theseWest pMecklenburgublic schools are and a part Olympic of the ProjectHigh Schools Lift program,are nearby. a privately The area funded also effort has its to complementupgrade the academic of Elementary performance and in Middle the feeder Schools. schools Some of West of Charlottethese public High School.schools This are program a part of is the relatively Project new Lift; therefore, program, results a privately at this pointfunded are effortdifficult to to upgradediscern, although the academic the graduation rateperformance at West Charlotte in the feederhas shown schools significant of West improvement Charlotte in High the past School. couple This of years. program is relatively new; therefore, results at this point are difficult to discern, although the graduation rate at West Charlotte has For years, Goodwill Industries of the Southern Piedmont has had its primary site for job training on Freedom Drive. shown significant improvement in the past couple of years. Goodwill has recently announced that it will build a new campus further west and just out of this study area; therefore, the job training function is likely to migrate to the new site, which will continue to be accessible to the people of West For years, Goodwill Industries of the Southern Piedmont has had its primary site for job training on Charlotte. The Urban League also has a job training site near Uptown Charlotte but easily accessible to this part of town. Freedom Drive. Goodwill has recently announced that it will build a new campus further west and just out CPCC’s Cosmetology School in the Ashley Park neighborhood has outstanding enrollment in its programs. of this study area; therefore, the job training function is likely to migrate to the new site, which will Thecontinue educational to be infrastructure accessible to in the this people area certainly of West has Charlotte. the potential The to Urbanbegin improving League alsothe educatio has a jobnal training deficit. T hesite educationalnear Uptown traits Charlotte of the population but easily certainly accessible impact to the this real part estate of town. dynamics CPCC’s. We l ookCosmetology at only three School of four inindicators, the whichAshley will Park be sufficientneighborhood to indicate has the outstanding nature of the enrollment deficit that needsin its programs.to be overcome in order for the people of this area and the real estate market to prosper. The educational infrastructure in this area certainly has the potential to begin improving the educational Indeficit. looking Theat educational educational variables, traits theof the one population that is almost certainly universally impact agreed the upon real is estatethat if onedynamics. does not haveWe look a high at only schoolthree ofdiploma four indicators, or its equivalent, which job will opportunit be sufficienties and economic to indicate mobility the arenature severely of the restricted. deficit thatMost needsagree tothat be the absoluteovercome minimum in order threshold for the for people functioning of this in area the currentand the economy real estate is a highmarket school to prosper.diploma. 15

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 1414 Planning Cycle 1 – Data Immersion

In looking at educational variables, the one that is almost universally agreed upon is that if one does not have a high school diploma or its equivalent, job opportunities and economic mobility are severely restricted. Most agree that the absolute minimum threshold for functioning in the current economy is a high school diploma.

The percentage of adults (aged 25 and above) without a high school diploma in Mecklenburg County is 12%.

Ten of the twelve NPAs in our study area are above the county average. In one of the Ashley Park NPAs (361), CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief 57.1% of the adults do not have a high school diploma. In five of the NPAs, between 35.7% and 38.3% do not have high school diplomas. The three NPAs that are closest to the county average are: Enderly Park (NPA 6) The percentage of adults (aged 25 and above) without a high school diploma in Mecklenburg County is 12%. Ten of the with 19.5%, Wesley Heights (NPA 51) with 10.9% and Seversville (NPA 347) with 9.8%. twelve NPAs in our study area are above the county average. In one of the Ashley Park NPAs (361), 57.1% of the adults do not have a high school diploma. In five of the NPAs, between 35.7% and 38.3% do not have high school diplomas. In some parts of North Carolina, educational attainment data like those above are indicative of an aging The three NPAs that are closest to the county average are: Enderly Park (NPA 6) with 19.5%, Wesley Heights (NPA 51) population that grew up at a time when a high school diploma was not needed to do work in agriculture or in with 10.9% and Seversville (NPA 347) with 9.8%. the mill. But, the age characteristics of the population in the study area do not reflect this historical trend. InThe some people parts in of theNorth study Carolina, area areeducational relatively attainment young, in data many like casesthose aboveyounger are indicativethan the Mecklenburgof an aging population average that age, grewand Mecklenburgup at a time when County, a high itself, school has diploma a younger was not population needed to dothan work most in agriculture places in theor in United the mill. States. But, the age characteristics of the population in the study area do not reflect this historical trend. The people in the study area are relativelyThe low young,attainment in many scores cases are younger reflecting than the something Mecklenburg else, average namely age, dropping and Mecklenburg out before County, graduating itself, has from a high youngerschool. population The county than average most places dropout in the rate United is 3.0%, States. and four of the twelve NPAs are very close to that average: Smallwood (NPA 292) 1.6%, University Park (NPA 70) 2.7%, Enderly Park (NPA 293) 3.0%, and Enderly Park The(NPA low 5) attainment 3.3%. Six additional scores are reflectingNPAs have something a dropout else, rate namely between dropping 5.1% out and before 13.5%. graduating The two fromNPAs high that school. are The countysubstantially average above dropout the rate county is 3.0%, norm and fourare Ashley of the twelve Park (NPA NPAs 361)are very 13.5% close and to Wesley that average: Heights Smallwood (NPA 51) (NPA 20.0%. 292) 1.6%,This lastUniversity number Park is (NPAa surprise, 70) 2.7%, and Enderly there Parkis no (NPA ready 293) explanation 3.0%, and Enderly of why Park such (NPA a high 5) 3.3%. average Six additional is occurring NPAs in havethe most a dropout rapidly rate advancing between 5.1% NPA and in 13.5%.the study The area. two NPAs While that many are substantially of the dropout above rates the remaincounty norm high, are the Ashley Parkincreased (NPA 361) attention 13.5% andto improving Wesley Heights this (NPAmeasure 51) 20.0%. of educational This last number attainment, is a surprise, that is, and graduating there is no from ready high explanationschool, may of bewhy successfully such a high averagemoving is the occurring dropout in the numbers most rapidly more advancing toward the NPA county in the studyaverage, area. which While is many of thesomething dropout rates to celebrate. remain high, the increased attention to improving this measure of educational attainment, that is, graduating from high school, may be successfully moving the dropout numbers more toward the county average, which isThere something always to iscelebrate. a “but,” and in this case, we have a measure of the average number of students who had at least 10 unexcused absences during the most recent school year. Unexcused absences are viewed as one of There always is a “but,” and in this case, we have a measure of the average number of students who had at least 10 the most powerful precursors to becoming a full-fledged dropout. The county average on this measure is unexcused absences during the most recent school year. Unexcused absences are viewed as one of the most powerful 11.0%. None of our 12 NPAs is at or below the county average. Four of the NPAs have an average 10+ precursors to becoming a full-fledged dropout. The county average on this measure is 11.0%. None of our 12 NPAs is at unexcused absence rate in the teens, another 7 NPAs have an average in the 20s and one Seversville (NPA or below the county average. Four of the NPAs have an average 10+ unexcused absence rate in the teens, another 7 347) has 32.6% of its students with at least ten unexcused absences. This later number is also a surprise NPAs have an average in the 20s and one Seversville (NPA 347) has 32.6% of its students with at least ten unexcused considering that Seversville is doing relatively well on the other indicators. The bottom line is that with the absences. This later number is also a surprise considering that Seversville is doing relatively well on the other indicators. Thekind bottom of absentee line is that rate with that the is found kind of in absentee these data, rate thatthe highis found schools in these serving data, the this high area schools will continue serving this to areabe will continuechallenged to be to challenged keep students to keep enrolled students through enrolled graduation. through graduation.

NPA Number 5 6 51 70 85 88 124 292 293 347 361 382 Wesley University Washington Ashley Park County NPA Name Enderly Park Enderly Park Heights Park Heights Lakewood & W. Blvd. Smallwood Enderly Park Seversville Ashley Park Biddleville Averages Adults (25 & Older) Without High School Diploma 38.3% 19.5% 10.9% 25.9% 22.0% 35.7% 25.8% 37.9% 37.1% 9.8% 57.1% 37.8% 12.0% Dropout Rate 3.3% 9.3% 20.0% 2.7% 5.8% 12.3% 5.1% 1.6% 3.0% 6.9% 13.5% 9.9% 3.0% 10+ Unexcused Absences (% of Students) 22.7% 25.9% 14.3% 14.9% 25.1% 18.9% 17.2% 23.8% 26.6% 32.6% 21.6% 27.0% 11.0% Source: 2012 Charlotte-Mecklenburg Quality of Life study

This part of the City continues to suffer significant educational deficits. Data taken from one point in time, as these are, Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 1515 cannot indicate whether there has been improvement or failure over any period of time. However, over the next few years, comparison data for all schools will be available and will be instrumental in measuring change or the lack thereof over time. This foundational issue needs to be addressed, if the goals to provide mobility for its citizens, and stabilize and improve the economic performance of this area are to be achieved. 16

Planning Cycle 1 – Data Immersion

This part of the City continues to suffer significant educational deficits. Data taken from one point in time, as these are, cannot indicate whether there has been improvement or failure over any period of time. However, over the next few years, comparison data for all schools will be available and will be instrumental in measuring change or the lack thereof over time. This foundational issue needs to be addressed if the goals to provide mobility for its citizens and stabilize and improve the economic performance of this area are to be achieved. CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief Employment and Economic Base TheEmployment Charlotte and MSA Economic has recovered Base substantially based upon employment and population growth over the pastThe Charlottethree years. MSA Aside has recovered from the substantially sector of the based economy upon employment – defined and by population traditional growth Standard over theIndustry past three Classificationyears. Aside from (SIC) the sectoror the of morethe economy recent –North defined American by traditional Industrial Standard Classification Industry Classification (NAICS) (SIC) – the or thesize more or stagerecent of North each American company Industrial is a factor Classification when determining (NAICS) – the employmentsize or stage of growtheach company and its is relationshipa factor when todetermining real estate.employment The overall growth labor and its market relationship is improving to real estate. largely The dueoverall to laborstartups market and is smallimproving, businesses largely due growing to startups and and companysmall businesses relocations. growing, However, and company according relocations. to data However, from accordingthe Edward to data E. Lowe from theFoundation, Edward E. Lowe the number Foundation, of largerthe number business of larger establishments business establishments from 2012-2013 from 2012 in -Mecklenburg2013 in Mecklenburg County County has shrunk,has shrunk, suggesting suggesting thethe growthgrowth ofof small small business business in the in theregion. region. The challenge The challenge is to assess is to both assess employment both employment and unemployment, and unemployment, as many asworkers many in workers the unemployment in the unemployment figures maybe figuresno longer seekmay ingbe ano job. longer Below seeking is snapshot a job. of the Below regional is snapshot labor market of the regionalincluding laboremployment market by including industry sectors: employment by industry sectors:

Source: North Carolina Employment Security Commission

A review of the economic data reveals that the majority of workers are employed in the service and sales sectors. Most notable is the 20.3% unemployment reported within this area as compared to other areas of the city and the region.

60% 50% Management & Prof'l 40% 30% Service 20% 10% Sales and Office 0%

Natural Resources/ Construction Production/ Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 1616 Transportation /Materials

Employment Sector Table Source: Charmeck Initial Data Collection Tables

CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

Employment and Economic Base The Charlotte MSA has recovered substantially based upon employment and population growth over the past three years. Aside from the sector of the economy – defined by traditional Standard Industry Classification (SIC) or the more recent North American Industrial Classification (NAICS) – the size or stage of each company is a factor when determining employment growth and its relationship to real estate. The overall labor market is improving, largely due to startups and small businesses growing, and company relocations. However, according to data from the Edward E. Lowe Foundation, the number of larger business establishments from 2012-2013 in Mecklenburg County has shrunk, suggesting the growth of small business in the region. The challenge is to assess both employment and unemployment, as many workers in the unemployment figures maybe no longer seeking a job. Below is snapshot of the regional labor market including employment by industry sectors:

Planning Cycle 1 – Data Immersion

Source: North Carolina Employment Security Commission A review of the economic data reveals that the majority of workers are employed in the service and A review of the economicsales sectors. data reveals Most notablethat the is majority the 20.3% of workersunemployment are employed reported in thewithin service this andarea sales as compared sectors. Most to notable is the 20.3%other unemployment areas of the reported city and withinthe region. this area as compared to other areas of the city and the region.

60% 50% Management & Prof'l 40% 30% Service 20% 10% Sales and Office 0%

Natural Resources/ Construction Production/ Transportation /Materials

Employment Sector Table Source: Charmeck Initial Data Collection Tables

Economic Base Analysis is used to understand what drives a regional or local economy and 17 determines real estate demand. The underlying theme suggests that jobs drive demand for real estate: in other words, for every job that is created, a multiplier effect increases overall employment, thus increasing both population and income within an area benefiting from such job growth. The corresponding growth (or decline) in jobs, population and income correspond to demand, and stability, for various uses of real estate. There are two types of jobs: those which export their goods and services outside the community (basic employment), and those which service the local community (service or non-basic employment). Therefore, companies seeking to locate in the area with basic jobs are the goal of most economic development officials. These companies occupy both office and industrial space and are the catalysts for subsequent growth in housing and retail. Other factors such as education and income also influence workforce development, housing and consumer expenditures, which supports retail and other commercial uses.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 1717 Planning Cycle 1 – Data Immersion

1.4 Economic Base and Real Estate Markets Successful economic development strategies result in job growth. Job growth creates demand for real estate. These are the result of business recruitment efforts, together with the product availability that is attracting companies to Charlotte.

The region’s employment location quotient, or percentage of US employment ratios that exceed base industry standards, identifies which sectors contribute the greatest local job and economic growth. Those with quotients greater than 1.00 demonstrate higher than US averages and thus contribute to the local economic base. Sector employment is reported at the State, Metro area and County level.

North Carolina and Mecklenburg County were reviewed and compared. The top-ranked economic driver for the state is Management of Companies and Enterprises (NAICS 55), followed closely by Manufacturing (NAICS 31-33). For Mecklenburg County, Management of Companies and Enterprises is also the strongest driver, followed by Finance and Insurance (NAICS 52) and Information (NAICS 51), the next most dominant industries, which drive office demand.

However, other sectors do not correlate closely with the state. Manufacturing is not a primary driver at the county level; however, transportation and warehousing does create demand for warehouse and distribution space serving a growing logistics sector, influenced by the Charlotte Douglas International Airport and adjacent multi-modal facilities south of the airport. When reviewing the more detailed subsectors, the influence of local industries becomes even more apparent: Data Processing, Air Transportation, and Broadcasting emerge as the drivers in Mecklenburg County’s economy, rather than the state’s traditional industries relating to textiles and furniture. The dominate sector fueling employment within the study area is Transportation and Warehousing – evidenced by the number of industrial properties within the CNIP.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 1818

Planning Cycle 1 – Data Immersion CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

TheThe table table below below compares compares the the key key industries industries and andsubsectors subsectors that drivethat drive the County’s the County’s economic economic base: base: The table below compares the key industries and subsectors that drive the County’s economic base: North Mecklenburg Location Quotients – Economic Base NorthCarolina MecklenburgCounty PrimaryLocation Industry Quotients (2013) – Economic Base Carolina County Primary Industry (2013) NAICS 55 - Management of Companies 1.28 2.60 NAICS 55 - Management of Companies 1.28 2.60 NAICS 52 - Finance & Insurance 0.92 2.03 NAICS 52 - Finance & Insurance 0.92 2.03 NAICS 51 - Information 0.89 1.56 NAICS 51 - Information 0.89 1.56 NAICSNAICS 48 -4849-49 - Transpor - Transportationtation && WarehousingWarehousing 0.870.87 1.441.44 NAICSNAICS 71 71- Arts, - Arts, Entertainment, Entertainment, && Recreation 1.011.01 1.401.40 NAICSNAICS 56 56- Administrative - Administrative & & Waste Waste Services 1.121.12 1.361.36 NAICSNAICS 42 42- Wholesale - Wholesale Trade Trade 1.041.04 1.321.32 NAICSNAICS 53 53- Real - Real Estate Estate Rental Rental & & LeasingLeasing 0.860.86 1.171.17 NAICSNAICS 54 54- Professional - Professional & & Technical Technical Services 0.840.84 1.101.10 SubSub-Sector-Sector (2013) (2013) NAICSNAICS 518 518 - Data - Data Processing Processing & & RelatedRelated ServicesServices 1.421.42 5.445.44 NAICS 481 - Air Transportation 0.97 4.73 NAICS 481 - Air Transportation 0.97 4.73 NAICS 515 - Broadcasting, except Internet 0.91 2.93 NAICS 515 - Broadcasting, except Internet 0.91 2.93 NAICS 522 - Credit intermediation & Related Activities 1.10 2.62 NAICSNAICS 522 551 - Credit - Management intermediation of Companies & Related & Enterprises Activities 1.281.10 2.602.62 NAICSSource: 551 Bureau - Management of Labor Statistics; of Companies Rose & Associates & Enterprises SE, Inc. 1.28 2.60 Source: Bureau of Labor Statistics; Rose & Associates SE, Inc.

Real Estate Demand Dynamics Real Estate Demand Dynamics The market potential for real estate relies upon a number of factors, including but not limited to: regional economic cycles, a business friendly regulatory environment, workforce dynamics (wage, education and job training), and The market potential for real estate relies upon a number of factors, including but not limited to: regional economic central places (i.e. colleges, hospitals or large employers) that are demand generators for complementary uses. The cycles,successful a business recruitment friendly of regulatorybusinesses generallyenvironment, results workforce in demand dynamics in the form ( wage,of either education office or industrialand job training), space. and centralProviding places competitive (i.e. colleges, labor, hospitals capital, operating or large employers)costs, materials that and are qualified demand locations generators will ensurefor complementary continued job uses. The successfulgrowth inrecruitment these sector ofs. businessesSuch demand generally drives employment results in demandand subsequently in the form demand of either for housing office andor industrial commercial space. Providinguses that competitive serve residents labor, and capital, employees operating such as costs, retail, materialsfood, entertainment and qualified and recreationlocations .will In turn, ensure the impactscontinue ofd job growthimproved in these fiscal sector performances. Such demandprovide opportunities drives employment for economic and mobility.subsequently demand for housing and commercial uses that serve residents and employees such as retail, food, entertainment and recreation. In turn, the impacts of improved fiscal performance provide opportunities for economic mobility. 1.5 Land Use Demand – Office Existing Supply & Pricing 1.5 Land Use Demand – Office The West Trade/Rozzelles Ferry study area is located within the North office submarket of the Charlotte region, which Existingincludes Supply the suburban & Pricing communities of Huntersville, Cornelius, and Davidson. Although this is a large area geographically, it is relatively small in terms of the quantity of developed space. It must also be kept in mind that inclusion of the Thenorthern West Trade/Rozzelles suburbs, with their Ferry recently study constructedarea is located general within and themedical North office office complexes, submarket produces of the a Charlottemore favorable region, which includes the suburban communities of Huntersville, Cornelius, and Davidson. Although this is a large area geographically, it is relatively small in terms of the quantity of developed space. It must also be kept in mind that inclusion of the19 northern suburbs, with their recently constructed general and medical office complexes, produces a more favorable

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 1919 Planning Cycle 1 – Data Immersion

1.5 Land Use Demand – Office Existing Supply & Pricing The West Trade/Rozzelles Ferry study area is located within the North office submarket of the Charlotte region, which includes the suburban communities of Huntersville, Cornelius, and Davidson. Although this is a large area geographically, it is relatively small in terms of the quantity of developed space. It must also be kept in mind that inclusion of the northern suburbs, with their CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief recently constructed general and medical office complexes, produces a more favorable statistical profile than would be exhibited by the study area alone. The following chart illustrates the North submarketstatistical profile historical than office would besnapshot exhibited driving by the futurestudy areaforecast alone. trends: The following chart illustrates the North submarket historical office snapshot driving future forecast trends:

North Market - Historical Office Market Analysis

Period 2010 2011 2012 2013 2014 YTD Number of Buildings 57 57 57 56 58 Total Inventory (Sq. Ft.) 2,355,583 2,355,583 2,355,583 2,355,583 2,334,399 Completions 0 0 0 0 0 Net Absorption 110,981 8,578 90,372 28,849 (45,289) Submarket Capture Rate (% of Total Market) 10.9% 4.0% 6.8% 2.2% -12.4% Total Vacant (Sq. Ft.) 452,858 444,280 353,908 315,059 360,348 Vacancy Rate 19.2% 18.9% 15.0% 13.8% 15.4% Class A 20.6% 19.9% 15.4% 14.4% 16.3% Class B 13.8% 14.4% 13.3% 11.5% 11.8% Class C N/A 0.0% 0.0% 0.0% 0.0% Average Rent $19.83 $19.99 $19.88 $20.39 $20.44 Class A $20.15 $20.22 $20.19 $20.62 $20.65 Class B $18.64 $19.06 $18.70 $19.47 $19.58 Class C N/A $0.00 $0.00 $0.00 $0.00 Sq. Ft. Under Construction 0 0 0 0 0 Sq. Ft. Proposed 1,146,164 1,146,164 1,021,164 946,164 594,224 Source: The KARNES Report 2nd Quarter 2014, Rose & Associates Five new office buildings totaling approximately 594,224 square feet are proposed to be constructed within the Fivesuburban new office areas of buildingsthe North totaling submarket. approximately None of them 594,224 are located square within feet theare studyproposed area, to or benear constructed enough to provide jobs withinto study the area suburban residents. areas The of study the Northarea is submarket.also heavily Noneinfluenced of them by the are Center located City within or Central the study Business area District or (CBD) nearmarket, enough as it isto located provide just jobs outside to study of the area inner residents. beltway The of I- study277. The area Greenway is also heavily Business influenced Park on Rozzelles by the Ferry Road adjacentprovides Center parcels City for both or Central office and Business industrial District development (CBD) submarket.. With the construcHowever,tion as of it theis located Mecklenburg just Bar Association outsideoffice building of the inner, it will beltway add 23,000 of I-277 square which feet ofcreates office aspace barrier to theand study separates area. itAlso from notable the Center is the proposed City. building Theadjacent Greenway to Mo Businesssaic Village, Park which on Rozzellescontemplates Ferry 60,000 Road square provides feet parcels of office for space both adjacent office toand the industrial existing parking deck. development. With the construction of the Mecklenburg Bar Association office building, it will add 23,000 square feet of office space to the study area. Also notable is the proposed building adjacent to Mosaic Village, which contemplates 60,000 additional square feet of office space.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 2020

Planning Cycle 1 – Data Immersion

CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

A review ofof inventoryinventory during during the the first first quarter quarter of 2015 of 2015 in the in studythe study area revealedarea revealed the following the following office spaceoffice opportunities, spacetotaling opportunities, 179,485 square totaling feet: 179,485 square feet:

Office Availabilities - West Trade/Rozzelles Ferry CNIP

Asking Available Asking Sale Asking Sale Lease Rate/ Address Sq. Ft. Price Price/Sq. Ft. Sq. Ft. Terms Charlotte School of Law 2145 Suttle Ave. 100,000 $17,500,000 $175.00 $22.00 Full Svc

2801 Crisman Street 60,000 $1,500,000 $25.00 NA Colony Park West $500,000 - $109.94 - 2303 W. Morehead Street 4,548 $550,000 $120.93 $12.00 - $14.00 Mod Gross

2211 W. Morehead Street 3,225 NA NA $10.00 - $12.00 Full Svc 1230 W. Morehead Street Suites 110 & 112 3,207 $359,000 $111.94 NA Greenway Business Center 2730 Rozzelles Ferry Road 2,874 NA NA $15.00 NNN 1230 W. Morehead St,reet Unit 308 2,003 $330,495 $165.00 $18.00 Mod Gross Colony Park West 2301 W. Morehead St. 1,828 $180,972 $99.00 $10.00 Mod Gross 1230 W. Morehead Street Unit 114 1,800 $209,900 $116.61 NA Total Sq. Ft. Available 179,485 Source: Charlotte SiteIndex, 11-18-2014 The largest block of office space is the former Charlotte School of Law building on Suttle Avenue, which is located Thebetween largest Morehead block of Street office and space Wilkinson is the Boulevard.former Charlotte This building School has of been Law recently building purchased on Suttle by Avenue, Mecklenburg County, locatedto house between a variety Morehead of departments, Street including and Wilkinson social services Boulevard. operations. This building In the past, has itbeen was recentlynoted by the local real estate purchasedprofessionals by that Mecklenburg buyers/tenants County are reluctant,to house agiven variety its relativeof departments, isolation and including disconnect social with services surrounding assets such operations.as the greenway, It was restaurants noted by theand local other real amenities. estate professionals This could be remediedthat buyers/tenants by providing were this gatewayreluctant to to the west side locatesome limited here given public its realm relative improvements, isolation and greenway disconnect connections with surrounding and way-finding assets signage such asto thecontinue greenway, to build the restaurantsmomentum andrecently other seen amenities. in the Morehead This could Street be remediedcorridor. by providing this gateway to the west side with some limited public realm improvements, greenway connections and way-finding signage to continue to build the momentum recently seen in the Morehead Street corridor. Office Absorption Office Absorption The following chart chart compares compares recent recent conditions conditions in the in Norththe North office office submarket submarket with those with of thoseother Charlotteof other submarkets, including the downtown, or Center City. The North and Downtown office markets experienced negative net absorption Charlotte submarkets, including the downtown, or Center City. The North and Downtown office in both Class A (new) and Class B space over the first half of 2014. markets experienced negative net absorption in both Class A (new) and Class B space over the first half of 2014.

21 Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 2121 Planning Cycle 1 – Data Immersion

CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief Charlotte Oﬃce Inventory, Average Rent, Vacancy & Net Absorption by Submarket and Class

CharlotteCla Officess A Inventory, Average Rent, Vacancy & NetCla Absorptionss B by Submarket and Class Class C Submarket InventoryCharlo Avg.tte Rent Office Vacancy Inventory, Net Average Abs. Ren Inventoryt, Vacancy & Avg. Net Rent Absorp Vacancytion by Submarket Net Abs. and Class Inventory Avg. Rent Vacancy Net Abs. Ballantyne/South 5,988,340 $23.62Class A 15.3% (57,050) 659,784 $19.21Class B 21.9% (7,832) 0 $0Class.00 C 0.0% 0 Submarket Inventory Avg. Rent Vacancy Net Abs. Inventory Avg. Rent Vacancy Net Abs. Inventory Avg. Rent Vacancy Net Abs. Cotswold 136,448 $23.40Class A 8.7% 0 84,199 $18Cla.84ss B 17.0% 2,494 0 $0Cla.00ss C 0.0% 0 Ballantyne/South 5,988,340 $23.62 15.3% (57,050) 659,784 $19.21 21.9% (7,832) 0 $0.00 0.0% 0 CrownPoint/MaSubmarket tthews 798 Inventory,574 Avg.$17 .79Rent Vacancy19.7% Net15,40 Abs.3 Inventory 307,324 Avg.$13 Rent.74 Vacancy27.2% Net (10, Abs.764) Inventory0 Avg. $0Rent.00 Vacancy 0.0% Net Abs. 0 Cotswold 136,448 $23.40 8.7% 0 84,199 $18.84 17.0% 2,494 0 $0.00 0.0% 0 DowntownBallantyne/South 5,988,340 $23.62 15.3% (57,050) 659,784 $19.21 2115.6%.9% (117,369) (7,832) 190,0702 $0$19.00.88 0.0%10.7% 8,18 0 8 CrownPoint/Matthews 798,574 $17.79 19.7% 15,403 307,324 $13.74 27.2% (10,764) 0 $0.00 0.0% 0 EastCotswold 42 136,30,4408 $19$23.50.40 0.0% 8.7% 0 0 875 84,,481989 $14$18.84.69 1722.0%.8% (41, 2,490934 ) 240,3100 $0$11.00.80 0.0%34.4% 0 0 Downtown 13,368,099 $28.53 11.4% (37,541) 3,416,190 $23.25 15.6% (117,369) 190,072 $19.88 10.7% 8,188 I-77CrownPoint/Ma Southeast tthews 6, 622 798 ,72,5784 $17$17.79.79 1819.2%.7% (41,15962,403) 1, 178 307,,283294 $13.74.83 2727.2%.5% (10, 764 452) 00 $0$0.00.00 0.0% 0.0% 0 0 East 42,300 $19.50 0.0% 0 875,488 $14.69 22.8% (41,093) 240,310 $11.80 34.4% 0 MidtownDowntown 2, 283,548 $25.67 4.0% 2,276 1,118,727 $20.29 1415.6%.9% (117,369) 12,932 190143,07,0726 $19$21.88.3610.7% 5.4% 8, 2,18488 3 I-77 Southeast 6,622,728 $17.79 18.2% (41,962) 1,178,289 $13.83 27.5% 452 0 $0.00 0.0% 0 NorthEast 1,8 71 42,241,300 $20$19.65.5016 0.0%.3% (3,385 0) 463 875,158,488 $19$14.58.69 2211.8%.8% (41,(5,880093)) 240,3100 $11$0.80.0034.4% 0.0% 0 0 Midtown 2,283,548 $25.67 4.0% 2,276 1,118,727 $20.29 14.9% 12,932 143,076 $21.36 5.4% 2,483 NortheastI-77 Southeast 3, 6,199622,18,7218 $18$17.20.79 1818.1%.2%143 (41,,999626) 1, 1,916178,,282879 $18$13.83.7527 6.7%.5% 218 45,7029 27,3204 $0$0.00.00 0.0% 0.0% 0 0 North 1,871,241 $20.65 16.3% (3,385) 463,158 $19.58 11.8% (5,880) 0 $0.00 0.0% 0 ParkMidtown Road 2, 58283,92,5478 $22$25.92.67 0.0% 4.0% 7, 2,342786 1, 668118,,477267 $16$20.29.39 1429.9%.5% 12 18,93,6524 143,0760 $21$0.36.00 5.4% 0.0% 2,483 0 Northeast 3,199,181 $18.20 18.1% 143,996 1,916,287 $18.75 6.7% 218,709 27,324 $0.00 0.0% 0 SouthParkNorth 3, 1,853071,46,2410 $25$20.30.65 16 9.6%.3% (6,(3,385026)) 718463,,158874 $19$20.58.53 1119.8%.7% (5,880 10,853) 00 $0$0.00.00 0.0% 0.0% 0 0 Park Road 58,927 $22.92 0.0% 7,348 668,476 $16.39 29.5% 18,654 0 $0.00 0.0% 0 TotalsNortheast 3,199,18 648,998,73 1 $18.20 18.1% 143,996 1,916,28 697,604,11950,32%5.3188.32$ 7 $19$18.75.59 17 6.7%.4% 218 81,70,1596 60027,32,7842 $0$17.00.22 0.0%18.4 10,67 0 1 SouthParkPark Road 3,530,460 58,927 $25.30$22.92 0.0%9.6% (6,026) 7,348 668 718,874,476 $16$20.53.39 29 19.7%.5% 18 10,853,654 0 0$0 $0.00.00 0.0% 0.0% 0 0 Source: The KARNES Report 2nd Quarter 2014, Rose & Associates TotalsSouthPark 37,899,846 3,530,460 $23.88$25.30 13.5% 9.6% 23,059 (6,026) 11,406,796 718,874 $20$19.59.53 19 17.4%.7% 10 81,156,853 600,7820 $0 $17.22.00 0.0% 18.4 10,671 0 Source:Totals The KARNES Report 2nd Quarter 2014, Rose 648,998,73 & Associates 697,604,11950,32%5.3188.32$ $19.59 17.4% 81,156 600,782 $17.22 18.4 10,671 Source: The KARNES Report 2nd Quarter 2014, Rose & Associates Historic absorption in the submarket has been negative, as this asset class continues to recover from Historic absorption in the submarket has been negative, as this asset class continues to recover from the recession and the recession and gain momentum. There is an average historical capture rate of 2.3% within the gainHistoric mom absorptionentum. There in the is ansubmarket average historicalhas been capturenegative, rate as thisof 2.3% asset within class continuesthe submarket to recover and a frommore the than recession ten-year and submarketHistoric absorp andti aon more in the than submarket ten-year has beensupply nega ofti ve,office as this spaceasset classin the con studytinues area,to recover based from upon the recessioncurrent and supplygain momentum. of office space There in theis an study average area, historical based upon capture curren ratet demand of 2.3% withinestimates. the submarketThis is dominated and a more by the than former ten-year demandgain mom estimates.entum. There This is anis dominatedaverage historical by the capture former rate Charlotte of 2.3% within School the submarketof Law and and Crisman a more than Street ten- year Charlosupplytt ofe Sch officeool spaceof Law in and the Crisman study area, Street based buildings, upon current while the demand majority estimates. of remaining This is available dominated spaces by the are former small o ffices buildings,supply of o whereasffice space the in the majority study area, of remaining based upon available current demand spaces es aretimates. small This offices is dominated located by thein formerand around locatedCharlotte in andSchool aro ofund Law W. and Morehead Crisman St. Street While buildings, there is whileexcellent the majorityaccess into of remainingthe study area,available there spaces are limited are small loca officestions W.Charlo Moreheadtte Schoo St.l of While Law and there Crisman is excellent Street bu accessildings, whileinto thethe majoritystudy area, of remaining there are available limited spaces locations are small with o ffices withlocated high inway and visibility, around aW. cam Moreheadpus environment St. While and there a job is excellent ready edu accesscated into workforce the study needed area, tothere drive are offi limitedce demand locations in the highwaylocated in visibility, and around a campusW. Morehead environment St. While there and isa excellentjob ready access educated into the workforce study area, needed there are to limited drive locaofficetions studywith highwayarea. visibility, a campus environment and a job ready educated workforce needed to drive office demand in the demandwith high inway the visibility, study area.a cam pus environment and a job ready educated workforce needed to drive office demand in the study area. Annualstudy area. Office Demand Estimate MecklenburgAnnual Office County Demand New Estimate Basic Employees (per year) 2013 9,618 Annual Office Demand Estimate EconomicMecklenburg Base County Multip Newlier Basic Employees (per year) 2013 9,6181.88 Mecklenburg County New Basic Employees (per year) 2013 9,618 NewEconomic Total EmployeesBase Multiplier 18,0821.88 Economic Base Multiplier 1.88 AverageNew Total Submarket Employees Capture Rate 18,0822.3% New Total Employees 18,082 EsAveragetimated SubmarketCapture in CaptureCNIP Rate 2.3%1% Average Submarket Capture Rate 2.3% NewEstimated Total EmployeesCapture in CNIPin CNIP (per year) 1811% Estimated Capture in CNIP 1% AverageNew Total # Office Employees Employees in CNIP (per year) 39.0% 18171 New Total Employees in CNIP (per year) 181 Average Office Space per Employee (S.F.) 150 AverageAverage # # OfficeOffice EmployeesEmployees 39.0%39.0% 7171 CNIP New Office Space Demand (S.F.) 10,578 AverageAverage Office Office SpaceSpace perper EmployeeEmployee (S.F.) 150150 CNIP Current Office Supply 179,485 CNIPCNIP New New OfficeOffice SpaceSpace DemandDemand (S.F.) 10,57810,578 CNIP Office Gap -168,907 CNIPCNIP Current Current OfficeOffice SupplySupply 179,485179,485 CNIPCNIP Office Office GapGap -168,907-168,907 Note: the balance of space demand is in other sectors including industrial, retail, education,Note:Note: the the balance governmentbalance ofof spacespace and otherdemanddemand uses. is in other sectors includingincluding industrial,industrial, retail, retail, education,education, governmentgovernment andand otherother uses. The greatest prospect for the revitalization in the study area is the repositioning of the former Charlotte Law School buTheTilheding greatest greatest which prospectprospect will eliminate forfor thethe t herevitalizationrevitaliza large gationp and in tthe hewill studystudy add up areaarea to isis400 tthehe employees r repositioningepositioning to thisof of the thearea former former. Comple Charlo Charlottetingtte its Law coLawnne Sch Schoolcootionl to subuildingburrouildingnd ingwhich which parcels, willwill eliminateeliminate as well as thet heconstruc large gap.gationp and Completingof the will pr addop osupitsed toconnection o 400ffice employees building to surrounding at to Mo thissaic area parcels,Village,. Comple andasti wellng development its as co constructionnnecti onof to low-impact,ofsu therrou proposednding cost parcels, effofficeec tivas building ewell space as atconstruc(exis Mosaictingti and onVillage, of ne thew) and prwiopthin developmentos edof smalleroffice building of footprints low-impact, at Mo atsaic t hecost Village, Gr effectiveeenway and Bu spacedevelopmentsine (existingss Park ofwill– and provinew)low-impact,de within opport ofcostun smalleri tieffesec fortiv footprints eup space to 50,0 ( exisat00 theti- ng100,000 Greenway and ne sw)qu Businessarewithin feet of ofPark smaller future will footprints oprovideffice to opportunitiesm atee thet or Gr exceeneedway for demand upBu sitone 50,000ss in Park the – st will– 100,000udy areasquareprovi overde feet othepp of ortnext futureun 5-10ities office foryears. up to to meet 50,0 or00 -exceed 100,000 demand square infeet the of study future area offi ceover to themee nextt or exc5-10eed years. demand in the study area over the next 5-10 years.

22 2222 Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 2222 Planning Cycle 1 – Data Immersion

1.6 Land Use Demand – Industrial Existing Supply & Pricing The Rozzelles Ferry/West Trade study area includes a substantial inventory of industrial buildings and vacant land zoned for industrial uses. While a specific industrial building inventory and assessment was not included in our scope of work, this should be considered to determine building obsolescence and those appropriate for adaptive re-use. In addition, the environmental history and status of these properties is currently unknown.

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Last Revised: Tuesday, December 9, 2014 The study area is located within the Northwest industrial submarket. This submarket aligns more closely with the study area boundaries, but extends further south into the area surrounding Charlotte Douglas International Airport. The Northwest industrial submarket is the third largest of the Charlotte market areas. The chart below focuses on the Northwest submarket history with respect to inventory, vacancy and pricing.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 2323

CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

1.6 Land Use Demand – Industrial

Existing Supply & Pricing

The Rozzelles Ferry/West Trade study area includes a substantial inventory of industrial buildings and vacant land zoned for industrial uses. While a specific industrial building inventory and assessment was not included in our scope of work, this should be considered to determine building obsolescence and those appropriate for adaptive re-use. In addition, the environmental history and status of these properties is currently unknown.

[Stantec – insert map with industrial land uses]

Planning Cycle 1 – Data Immersion The study area is located within the Northwest industrial submarket. This submarket aligns more closely with the study area boundaries, but extends further south into the area surrounding Charlotte Douglas International Airport. The Northwest industrial submarket is the third largest of the Charlotte market areas. The chart below focuses on the Northwest submarket history with respect to inventory, vacancy and pricing.

Northwest - Historical Industrial Market Analysis

Warehouse 2010 2011 2012 2013 2014 YTD Number of Buildings 39 39 39 39 44 Total Inventory (Sq. Ft.) 5,449,765 5,449,765 5,449,765 5,449,765 5,713,265 Completions 0 0 0 0 0 Net Absorption 33,446 (77,465) 252,097 197,664 81,736 Submarket Capture Rate (% of Total Market) 7.5% -21.2% 28.5% 8.8% 24.9% Total Vacant (Sq. Ft.) 713,621 791,086 538,989 341,325 458,564 Vacancy Rate 13.1% 14.5% 9.9% 6.3% 8.0% Average Rent $3.43 $3.31 $3.31 $3.38 $3.37 Sq. Ft. Under Construction - Sq. Ft. Proposed 305,081 305,081 305,081 305,081 305,081

Flex 2010 2011 2012 2013 2014 YTD Number of Buildings 7 7 7 7 7 Total Inventory (Sq. Ft.) 203,925 203,925 203,925 203,925 203,925 Completions 0 0 0 0 0 Net Absorption 14,685 (18,631) 1,780 9,879 (10,678) Submarket Capture Rate (% of Total Market) 11.2% -55.2% 1.2% 24.1% -8.7% Total Vacant (Sq. Ft.) 30,456 49,087 47,307 37,428 48,106 Vacancy Rate 14.9% 24.1% 23.2% 18.4% 23.6% Average Rent $8.10 $7.37 $6.84 $7.62 $7.67 Sq. Ft. Under Construction - Sq. Ft. Proposed - - - - - Source: The KARNES Report 2nd Quarter 2014, Rose & Associates

ManyMany of thethe existing existing indu industrialstrial properties properties in the in Rozzelles the Rozzelles Ferry/West Ferry/West Trade study Trade area study are older area structures are older which are structureshome to small which to mid are-size home companies, to small or to are mid-size vacant and companies potential candidates or are vacant for redevelopment. and potential Proposed candidates projects for in redevelopment.the Northwest submarket Proposed are projects near the instudy the area, Northwest but closer submarket to the airport, are nearwhere the major study development area, but closeractivity to is more thelikely airport, to take where place adjacent major development to intermodal facilities activity south is more of the likely airfield. to take There place is currently adjacent over to 300,000intermodal square feet of facilitiesindustrial southspace proposedof the airfield. in the vicinity There ofis thecurrently airport, inover the 300,000City Tech squarePark on feet Alleghany of industrial Street and space the Westproposed Pointe in the vicinity of the airport; in the City Tech Park on Alleghany Street and the West Pointe Business 23 Park on West Pointe Drive, both having direct access to the interstates and airport. To the north, the 386,000 square foot former Chemway Industrial Park, located just off Rozzelles Ferry Road near the CSX rail facilities, recently sold for $11 million dollars. This is largely attributed to the substantial CSX facilities which connect to the intermodal facilities at the airport. There are also two recycling operations within the study area (Caraustar adjacent to Savona Mills and GreenTek on Hovis Rd.) whose facilities are expanding in their existing locations.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 2424

CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

PlanningBusiness Cycle Park 1 –on Data West Immersion Pointe Drive, both having direct access to the interstates and airport. To the north, the 386,000 square foot former Chemway Industrial Park, located just off Rozzelles Ferry Road near the CSX rail facilities, recently sold for $11 million dollars.CNIP – This Rozzelles is largely Ferry/West attributed Trade to the Market substantial Analysis CSX Summary facilities, Brief which connect to the intermodal facilities at the airport. There are also two recycling operations within the study area (Caraustar adjacent to Savona Mills Businessand GreenTek Park on Weston Hovis Pointe Rd. Drive,) whose both facilities having direct are expanding access to the in theirinterstates existing and locations. airport. To the north, the 386,000 squareA review foot offormer inventory Chemway in Industrial the study Park, area located revealed just off Rozzellesthe following Ferry Road industrial near the CSXspace rail facilities,opportunities, recently totaling sold22,340A review for $11 square of million inventory feet: dollars. in Thisthe isstudy largely area attributed revealed to thethe substantialfollowing industrial CSX facilities, space which opportunities, connect to the totaling intermodal 22,340 square facilitiesfeet: at the airport. There are also two recycling operations within the study area (Caraustar adjacent to Savona Mills and GreenTek on Hovis Rd.) whose facilities are expanding in their existing locations. Industrial Availabilities - West Trade/Rozzelles Ferry CNIP A review of inventory in the study area revealed the following industrial space opportunities, totaling 22,340 square Asking feet: Available Asking Sale Asking Sale Lease Rate/ Address Industrial Availabilities - WestSq. Ft. Trade/RozzellesPrice FerryPrice/Sq. CNIP Ft. Sq. Ft. (NNN) 1859 Lindbergh Street 11,200 NA NA $5.50 Asking 1210 Alleghany Street 8,440 $695,000 $82.35 $8.32 Available Asking Sale Asking Sale Lease Rate/ Address2815 Rozzelles Ferry Road Sq. Ft. 2,700Price NAPrice/Sq. Ft. NA Sq. Ft. (NNN)$1.01 1859Total Lindbergh Sq. Ft. Available Street 11,200 22,340 NA NA $5.50 1210Source: Alleghany Charlotte Street SiteIndex, 11-18-2014 8,440 $695,000 $82.35 $8.32 2815 Rozzelles Ferry Road 2,700 NA NA $1.01 ItTotalIt is is noteworthySq.noteworthy Ft. Available to to mention mention that 22,340that despite despite the large the largeinventory inventory of space of within space the within submarket the submarket,, over 200,000 over square feet of 200,000Source:available Charlotte square space SiteIndex, lies feet 11-18-2014 just of adjacent available to thespace study lies area just in adjacent and around to the the airport study or area on thein and west around side of I- the85, thereairport is highor Itonoccupancy is noteworthythe west and side to li mentionmited of I-85, availability that there despite is actively thehigh large occupancyon inventory the market of andspace within limited within the CNIPthe availability submarket study area, overactively. The 200,000 most on notablesquare the market feet project of is the availablewithinSavona the spaceMill, CNIP alies redevelopment just study adjacent area. to opportunity theThe study most area notablefor in adaptive and around project reuse the is airportthat the includes Savona or on the proposed Mill, west aside redevelopment arts, of I- 85,breweries there is highand opportunity other uses. occupancyfor adaptive and lireusemited availabilitythat includes actively proposed on the market arts, within breweries the CNIP and study other area. Theuses. most notable project is the Industrial Absorption Savona Mill, a redevelopment opportunity for adaptive reuse that includes proposed arts, breweries and other uses. Industrial Absorption IndustrialThe following Absorption chart compares recent conditions in the Northwest submarket with those in other Charlotte submarkets. TheNet followingabsorption, chart while comparesnot negative, recent has been conditions very low, andin the average Northwest rents are submarket the lowest withof all thethose submarkets. in other TheCharlotte following submarkets. chart compares Net recent absorption, conditions inwhile the Northwest not negative, submarket has with been those very in other low, Charlotte and average submarkets. rents are

Netthe absorption,lowest of whileall the not submarkets. negative, hasCharlotte been veryIndustrial low, Inventory, and average Average Rent, rents Vacancy are &the Net lowest Absorption of by all Submarket the submarkets.

Warehouse Flex Totals Submarket Inventory Avg.Charlotte Rent Industrial Vacancy Inventory, Net Average Abs. Rent, Vacancy Inventory & Net Avg. Absorption Rent by Vacancy Submarket Net Abs. Inventory Avg. Rent Vacancy Net Abs. Central 3,710,496 $4.07 5.9% (12,363) 373,291 $10.24 9.8% 0 4,083,787 $4.63 6.3% (12,363) Warehouse Flex Totals SubmarketCrownPoint/Matthews Inventory332,122 Avg. Rent$6.13 Vacancy 5.3% Net Abs. Inventory0 906,838 Avg. Rent Vacancy$8.3317.5% Net Abs. Inventory3,007 Avg. 1,238,960 Rent Vacancy$7.74 Net Abs. 14.2% 3,007 CentralEast 3,710,496 0$4.07 $0.00 5.9% 0.0%(12,363) 373,2910 299,534$10.24 $11.449.8% 22.7%0 4,083,7871,250 $4.63 299,534 6.3%$11.44 (12,363)22.7% 1,250 CrownPoint/MatthewsNorth 332,1227,960,105 $6.13$4.50 5.3% 6.0% 0 (52,529) 906,838 2,171,563$8.33$10.09 17.5% 7.1%3,007 1,238,960116,508 10,131,668$7.74 14.2%$5.70 3,007 6.2% 63,979 EastNortheast 853,8520 $0.00$3.68 0.0% 21.0% 0 299,5340 364,705$11.44 22.7%$8.82 26.7%1,250 299,53437,871 1,218,557$11.44 22.7%$5.22 1,250 22.7% 37,871 NorthNorthwest 7,960,1055,713,265 $4.50$3.37 6.0% 8.0%(52,529) 1,466 2,171,563 203,925$10.09 $7.677.1% 116,508 23.6% 10,131,668 826 5,917,190$5.70 6.2%$3.52 63,979 8.6% 2,292 NortheastSoutheast 853,852 0$3.68 $0.00 21.0% 0.0% 0 364,7050 168,119$8.82$12.25 26.7% 37,8719.6% 1,218,557(1,212) $5.22 168,119 22.7%$12.25 37,871 9.6% (1,212) NorthwestSouthwest 5,713,26515,995,480 $3.37$4.45 8.0% 6.9% 1,466 28,979 203,925 6,222,681$7.67 23.6%$8.11 21.1% 826 5,917,190(79,726) 22,218,161$3.52 8.6%$5.47 2,292 10.9% (50,747) SoutheastTotals 34,565,3200 $0.00$4.29 0.0% 7.1% 0 (34,447) 168,119 10,710,656$12.25 $8.789.6% 17.6%(1,212) 168,11978,524 45,275,976$12.25 9.6%$5.35 (1,212) 9.6% 44,077 Southwest 15,995,480 $4.45 6.9% 28,979 6,222,681 $8.11 21.1% (79,726) 22,218,161 $5.47 10.9% (50,747) Source: The KARNES Report 2nd Quarter 2014, Rose & Associates Totals 34,565,320 $4.29 7.1% (34,447) 10,710,656 $8.78 17.6% 78,524 45,275,976 $5.35 9.6% 44,077 Source: The KARNES Report 2nd Quarter 2014, Rose & Associates

With a historical average capture rate of 9.7% the importance of industrial uses is evident in this area given its locational With a historical average capture rate of 9.7% the importance of industrial uses is evident in this area Withcharacteristics a historical average and potential capture availabilityrate of 9.7% of the workforce importance in ofthe industrial sectors usesthat is support evident thisin this use. area There given are its locationaltwo factors driving characteristicsgiven its locational and potential characteristics availability of workforce and potential in the sectors availability that support of workforce this use. There in theare two sectors factors that driving support industrial uses within the study area: first is the transition of industrial uses, including outside storage, and its impact on industrialthis use. uses There within are the two study factors area: first driving is the transitionindustrial of industrialuses within uses, includingthe study outside area; storage, first isand the its impacttransition on of the neighborhoods that are immediately adjacent to them. Second, no information was made available concerning the theindustrial neighborhoods uses, thatincluding are immediately outside adjacent storage, to them. and itsSecond, impact no information on the neighborhoods was made available that concerning are immediately the extentadjacentextent to to which towhich them. environmental environmental Second, contamination no contamination information may impact may was impact reusemade or reuse availableredevelopment or redevelopment concerning of existing of theindustrial existing extent propertiesindustrial to which inproperties in environmental contamination may impact reuse or redevelopment of existing industrial properties 24 24 in the study area. With an unemployment rate recently reported at 20.3% for the West Trade/Rozzelles Ferry residents, these existing industrial areas may be a good fit for small to mid-size companies seeking to control costs and find low skill workers. This includes repositioning of industrial buildings along the lower Freedom Drive corridor, and adding low-impact flex space to complement the existing office space at the Greenway Business Park.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 2525

CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

Planningthe study Cycle area. 1 – Data With Immersion an unemployment rate recently reported at 20.3% for the West Trade/Rozzelles Ferry residents, these existing industrial areas may be a good fit for small to mid-size companies seeking to control costs and find low skill workers. This includes repositioning of industrial buildings along the lower Freedom Drive corridor, and adding low- impact flex space to complement the existing office space at the Greenway Business Park.

Annual Industrial Demand Estimate Mecklenburg County New Basic Employees (per year) 2013 9,618 Economic Base Multiplier 1.88 New Total Employees 18,082 Average Submarket Capture Rate 9.7% Estimated Capture in CNIP 1% New Total Employees in CNIP (per year) 181 Average # Industrial Employees 12.0% 22 Average Industrial Space per Employee (S.F.) 896 CNIP New Industrial Space Demand (S.F.) 19,442 CNIP Current Industrial Supply 22,340 CNIP Industrial Gap -2,898

Note: the balance of space demand is in other sectors including retail, office, education, government and other uses.

Small to mid-size companies have the best potential for use of older properties, which provide low cost space options near the interstates and provide employment opportunities for neighborhood residents. Clusters include automotive supply and repair; distribution and light manufacturing. Some buildings may also be suitable for re-purposing for different uses such as breweries, senior housing, rental housing, small business incubation/education space and other uses. Primary candidates include the Savona Mill, Greenway Business Park and the existing buildings along the lower Freedom Drive and planned Thrift St/Berry Hill roundabout. This includes the repositioning of the Goodwill facilities. Together these would provide the 100,000 – 200,000 square feet anticipated over the next 5-10 years.

1.7 Land Use Demand - Retail The demand dynamics for retail differ from office/industrial uses, as demand comes not only primarily from job growth, but also from disposable income. The demographic benchmarks for retail include population and households, but most importantly disposable income to spend on goods/services. Consumer Expenditures outline the average dollars spent in any given category for those items on an annual basis. Within each trade area there are a number of components that determine which retail operators might find adequate demand for their goods/services, or retail sales potential.

Trade Areas

Unlike geographic areas – such as census block, or other boundaries, trade areas identify the market potential for goods and services within a specific distance to the consumer. These assist in determining threshold demographics such as population, income, workers, education and other factors required to support various sectors. The primary method for determining a trade area for data collection and real estate survey has become commonly defined as a prescribed distance radius around a specific intersection/location. This is predominately used to analyze threshold population and consumer dollars for retail uses. The secondary method, becoming more common with urbanization and growing traffic volumes, is the drive-time analysis. Drive time analysis evaluates the dynamics in a more urban environment where 25

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 2626 Planning Cycle 1 – Data Immersion

1.7 Land Use Demand - Retail The demand dynamics for retail differ from office/industrial uses, as demand comes not only primarily from job growth, but also from disposable income. The demographic benchmarks for retail include population and households, but most importantly disposable income to spend on goods/ services. Consumer Expenditures outline the average dollars spent in any given category for those items on an annual basis. Within each trade area there are a number of components that determine which retail operators might find adequate demand for their goods/services or retail sales potential.

Trade Areas Unlike geographic areas – such as census block or other boundaries, trade areas identify the market potential for goods and services within a specific distance to the consumer. These assist in determining threshold demographics such as population, income, workers, education and other factors required to support various sectors. The primary method for determining a trade area for data collection and real estate survey has become commonly defined as a prescribed distance radius around a specific intersection/location. This is predominately used to analyze threshold population and consumer dollars for retail uses. The secondary method, becoming more common with urbanization and growing traffic volumes, is the drive-time analysis. Drive time analysis evaluates the dynamics in a more urban environment where traffic congestion can impact the time versus mileage traveled to determine customer trade areas. In other words, consumers may choose locations based upon destination in time versus miles, depending on time of day and traffic status. Commuting patterns determine the ability for a company to attract both consumers and employees.

Convenience oriented goods/services contemplate those goods/services that are local and convenience oriented for those living and/or working in the immediate area such as within 1-5 miles or a 5-10 minute drive time. Destination oriented goods/services contemplate a trade area that provides employment opportunities and goods/services on a more regional level. This would include destination-oriented goods/services such as specialty retail, major goods, entertainment/recreation venues and employment centers. This would attract those within the local area as well as those from outside the area, with distances in excess of 5-7 miles or drive times in excess of 15+ minutes.

Since trade areas are based upon site specific locations, these are based upon their accessibility, traffic volumes and likelihood to attract customers from either the local or more regional trade area. The following intersections were reviewed and considered as both convenience and destination oriented locations: Freedom Drive at Ashley Road (Valerie C Woodard County offices, the former Freedom Mall site) and West Trade at Rozzelles Ferry (JCSU/Mosiac). When considering the impact of these central places, these trade areas assist to identify the dynamics of consumer behavior and retail demand potential for major industry group segments.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 2727

CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

traffic congestion can impact the time versus mileage traveled to determine customer trade areas. In other words, consumers may choose locations based upon destination in time versus miles, depending on time of day and traffic status. Commuting patterns determine the ability for a company to attract both consumers and employees.

Convenience oriented goods/services contemplate those goods/services that are local and convenience oriented for those living and/or working in the immediate area such as within 1-5 miles; or a 5-10 minute drive time. Destination oriented goods/services contemplate a trade area that provides employment opportunities and goods/services on a more regional level. This would include destination-oriented goods/services such as specialty retail, major goods, entertainment/recreation venues and employment centers. This would attract those within the local area as well as those from outside the area, with distances in excess of 5-7 miles or drive times in excess of 15+ minutes.

Since trade areas are based upon site specific locations, these are based upon their accessibility, traffic volumes and

Planninglikelihood Cycle to 1attract – Data Immersion customers from either the local or more regional trade area. The following intersections were reviewed and considered as both convenience and destination oriented locations: Freedom Drive at Ashley Road (Valerie Woodword County offices, the former Freedom Mall site) and West Trade at Rozzelles Ferry (JCSU/Mosiac). When considering the impact of these central places, these trade areas assist to identify the dynamics of consumer behavior and retail demand potential for major industry group segments. The accessibility of Freedom Drive off both Interstates 77 and 85 and its high traffic volumes suggests thisThe accessibilitylocation serves of Freedom as a regional, Drive off destination both Interstates location. 77 andAutomobile 85 and its traffic high traffic along volumes Freedom suggests Drive this boasts location overserves 32,000 as a regional, cars per destination day coming location. to or passing Automobile through traffic the along study Freedom area according Drive boasts to currentover 32,000 NCDOT cars per day estimates.coming to or Conversely, passing through the dynamics the study ofarea the according Five Points to current intersection NCDOT at estimates. West Trade Conversely, at Rozzelles the Ferrydynamics of the demonstrates lower traffic volumes (20, 000 cars per day) which service JCSU, the surrounding Five Points intersection at West Trade at Rozzelles Ferry demonstrates lower traffic volumes (20, 000 cars per day) which neighborhoods and local commuting traffic, suggesting a more convenience oriented location. The service JCSU, the surrounding neighborhoods and local commuting traffic, suggesting a more convenience oriented map below offers a view of these trade areas: location. The map below offers a view of these trade areas:

Freedom Dr. 10 & 20 minute drive times W. Trade 5 & 10 minute drive times

While demand is determined by per capita and household income, supply is defined not only by square feet available, but the actual dollar expenditures within each category for a given trade area. While demand is determined by per capita and household income, supply is defined not only by square feet available, The retail potential includes either negative values (surplus) which suggest oversupply (or in some instancesbut the actual or a dollar market expenditures where customers within each are drawncategory in for from a given outside trade the area. area), The or retail positive potential values includes either (leakage)negative values which (surplus) indicate which areas suggest of opportunity oversupply for (or additional in some instancesretail within or a amarket given whertradee area. customers Where are drawn in therefrom outsideis a retail the gap area) in, selector positive categories, values (leakage)the potential which income indicate must areas meet of opportunity the thresholds for additional of per square retail within a footgiven sales trade (as area. found Where in samplings there is a retail from gap Dollars in select & Cents categories, of Shopping the potential Centers, income an annual must meet trade the thresholds of per publicationsquare foot saleswhich (as surveys found in U.S. samplings retailers) from based Dollars upon & Cents each ofcategories Shopping average Centers, size. an annual trade publication which surveys U.S. retailers) based upon each categories average size. According to a recent report from Price Waterhouse Coopers (PwC), the divergence in two types of consumers is driving changes in the retail landscape, says Steven Barr, U.S. retail and consumer sector leader at PwC. Americans earning more than $50,000 are spending more money and focusing 26 less on discounts, but there are fewer of them. Meanwhile, those earning less than $50,000 are scrimping more and demanding promotions. Other pressures facing retailers include the persistent post-crisis demand for discounts, the rise of fast-fashion brands and the need to integrate online and in-store shopping. The U.S. Department of Agriculture (USDA) defines a low-access community as one in which at least 500 people or 33% of the census tract’s population live more than one mile from a supermarket or large grocery store. According to a ULI report on Retail in Underserved Communities, “when a community desires better quality rather than more stores, it is an underserviced market”. In addition to an expanded array of stores, often lacking are expanded services from convenience oriented categories such as health care, dry cleaners, beauty salons, banking and other neighborhood conveniences.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 2828 Planning Cycle 1 – Data Immersion

Targeted Buyer Segments Determining the depth of the market based on household income and expenditure projections is limiting. Therefore, geo-demographic segmentation, or lifestyle clustering, helps us understand that demographic variables exist not only region to region but by neighborhoods and in sub-communities within each neighborhood as well. This type of modeling is based on the premise that people tend to gravitate towards communities/neighborhoods of relative homogeneity. Factors that go into clustering include age, income, education, ethnicity, occupation, housing type and family status. Tapestry Segmentation™ identifies those households with a preference for living in rural areas versus urban neighborhoods.

Of 65 total potential segments, two segments dominate the landscape within the study area. These include Metro City Edge and Metro Renters. While the demographic, socioeconomic and housing lifestyles mirror those found in our profile, each have different buying characteristics and consumer behavior that create demand for shopping, recreation and entertainment preferences. In Metro City Edge neighborhoods, Grandparents are caregivers in 4% of these households. These residents must spend their money wisely to ensure the welfare of their children. They watch TV, go to movies and professional sports events. They enjoy music and urban/contemporary hit radio. Metro Renters are young, educated singles and these neighborhoods are characterized by urban multi-family housing. They rent but buy home décor and furniture. They are actively involved in clubs, sports, movies and eating out. They are CNIPengaged – Rozzelles in technology Ferry/West and Trade listen Market to music Analysis and Summary radio. Brief

Existing Retail Supply & Pricing Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 2929 The subject site is located in the Northwest submarket. The majority of retail space in the West Trade/Rozzelles Ferry CNIP is currently scattered along the Freedom Drive corridor. The map below shows retail centers by type within the study area, showing the area serviced by Neighborhood Grocery and smaller Retail Service Centers:

Planning Cycle 1 – Data Immersion

Existing Retail Supply & Pricing The subject site is located in the Northwest submarket. The majority of retail space in the West Trade/ Rozzelles Ferry CNIP is currently scattered along the Freedom Drive corridor. The map below shows retail centers by type within the studyCNIP area, – showingRozzelles the area Ferry/West serviced by Neighborhood Trade Market Grocery Analysis and Summary Brief smaller Retail Service Centers:

CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

Despite the relatively low vacancy rates in this submarket, the vacancy rate within the study area is 22.5% dominated by the vacant Kmart and big box center on Freedom Drive. There is a total inventory of over

768,000 square feet of retail space within a mile and a half of the study area. Despite the relatively low vacancy rates in this submarket, the vacancy rate within the study area is 22.5% dominated by the vacant Kmart and big box center on Freedom Drive. There is a total inventory of over 768,000 square feet of retail space within a mile and a half within and surrounding the study area.

Despite the relatively low vacancy rates in this submarket, the vacancy rate within the study area is 22.5% dominated by

Rozzellesthe vacant Ferry/West Kmart Trade Street and Charlotte, big NC box • Rose center & Associates on Southeast, Freedom Inc. Drive. There is a total inventory3030 of over 768,000 square feet of retail space within a mile and a half within and surrounding the study area.

Planning Cycle 1 – Data Immersion

CNIP CNIP– Rozzelles – Rozzelles Ferry/West Ferry/West Trade Market Trade Analysis Market SummaryAnalysis SummaryBrief Brief

Retail by SubmarketRetail by Submarket Submarket No. Bldgs Inventory Completions Net Abs. Vacant Sq. Ft. Vacancy % Avg. Rent UC SF Proposed Sq. Ft. Submarket No. Bldgs Inventory Completions Net Abs. Vacant Sq. Ft. Vacancy % Avg. Rent UC SF Proposed Sq. Ft. Cabarrus County 57 7,552,407 0 (26,529) 341,767 4.5% $16.37 40,601 3,084,838 Cabarrus County 57 7,552,407 0 (26,529) 341,767 4.5% $16.37 40,601 3,084,838 Downtown 19 913,463 0 (21,180) 105,616 11.6% $30.53 0 0 EastDowntown 61 6,242,351 19 913,463 0 (2,162)0 (21,180) 873,351 105,616 14.0% $16.4611.6% $30.53 70,600 880,9080 0 GastonEast County 48 5,589,953 61 6,242,351 0 (45,961)0 (2,162) 389,083 873,351 7.0% $15.05 14.0% $16.460 70,600 99,800 880,908 InnerGaston Southeast County 68 5,932,676 48 5,589,953 15,438 (139,831)0 (45,961) 493,508 389,083 8.3% $23.22 7.0% $15.05 85,375 304,7550 99,800 IredellInner County Southeast 47 4,208,104 68 5,932,676 59,084 15,438 (9,052) (139,831) 441,239 493,508 10.5% $15.86 8.3% $23.220 85,375395,138 304,755 LincolnIredell County County 18 1,173,728 47 4,208,1040 59,084 21,381 (9,052) 177,945 441,239 15.2% $12.48 10.5% $15.860 152,0000 395,138 NorthLincoln County 38 2,533,315 18 1,173,728 00 5,413 21,381 162,207 177,945 6.4% $21.73 15.2% $12.48 58,423 133,2000 152,000 NortheastNorth 52 4,842,090 38 2,533,315 10,600 (8,976)0 5,413 652,093 162,207 13.5% $17.64 6.4% $21.730 58,423 420,297 133,200 NorthwestNortheast 30 3,784,960 52 4,842,0900 10,600(6,228) (8,976) 317,604 652,0938.4% $16.80 13.5% $17.640 194,0000 420,297 OuterNorthwest Southeast 54 7,450,585 30 3,784,960 66,4450 (4,821)(6,228) 417,497 317,604 5.6% $26.358.4% $16.800 427,5000 194,000 Southwest 23 1,735,568 0 24,198 114,012 6.6% $23.61 538,888 545,739 Outer Southeast 54 7,450,585 66,445 (4,821) 417,497 5.6% $26.35 0 427,500 Union County 44 3,585,874 19,800 9,756 386,045 10.8% $17.32 65,000 1,662,179 YorkSouthwest County 65 5,403,396 23 1,735,568 0 12,2620 24,198 344,904 114,012 6.4% $17.88 6.6% $23.610 538,888 699,549 545,739 TotalsUnion County 624 60,948,470 44 3,585,874 171,367 19,800 (191,730) 5,216,871 9,756 386,045 8.6% $19.15 10.8% 858,887 $17.32 8,999,903 65,000 1,662,179 York County 65 5,403,396 0 12,262 344,904 6.4% $17.88 0 699,549 MecklenburgTotals 345 33,435,008 624 60,948,470 92,483 171,367(153,587) (191,730) 3,135,888 5,216,8719.4% $21.07 8.6%753,286 $19.15 858,887 2,906,399 8,999,903 Source: The KARNES Report 2nd Quarter 2014, Rose & Associates Mecklenburg 345 33,435,008 92,483 (153,587) 3,135,888 9.4% $21.07 753,286 2,906,399 A reviewSource: The of KARNES available Report space2nd Quarter in 2014,the Rosestudy & Associates area revealed the following retail opportunities, totaling 173,111 square feet of A review of available space in the study area revealed the following retail opportunities, totaling 173,111 available space, the most dominant being the former Kmart space. Another notable space not apparent in the squareA review feet ofof availableavailable spacespace, in the the most study dominant area revealed being the the following former retail Kmart opportunities, space. Another totaling notable 173,111 square feet of availability is the former A & P grocery store on West Trade, across from Mosaic Village: spaceavailable not apparent space, the in mostthe availability dominant beingis the the former former A & Kmart P grocery space. store Another on West notable Trade, space across not apparent from in the Mosaic Village: availabilityRetail is Availabilitiesthe former - West A Trade/Rozzelles & P grocery Ferry store CNIP on West Trade, across from Mosaic Village:

Asking Retail AvailabilitiesAvailable -Asking West SaleTrade/Rozzelles Asking Sale FerryLease CNIP Rate/ Address Sq. Ft. Price Price/Sq. Ft. Sq. Ft. (NNN) Kmart Plaza Asking 2615-2701 Freedom Drive 82,315AvailableNA Asking Sale NA Asking Sale $5.00Lease Rate/ City ViewAddress Shopping Center Sq. Ft. Price Price/Sq. Ft. Sq. Ft. (NNN) 1516 Alleghany Street 47,722 NA NA $6.00 - $14.00 Kmart Plaza Shops at Freedom 2615-2701 Freedom Drive 82,315 NA NA $5.00 2901-3053 Freedom Drive 14,297 NA NA $8.50 - $15.00 City View Shopping Center Westerly Hills Plaza 34001516 Wilkinson Alleghany Blvd. Street 4,958 47,722NANA NA $10.00 NA - $13.00$6.00 - $14.00 Shops at Freedom 37012901-3053 Freedom Drive Freedom Drive 4,771 14,297$400,000NA $83.84 NA NA$8.50 - $15.00 PridemoreWesterly Shopping Hills Plaza Center 16103400 Ashley Wilkinson Road (BiLo) Blvd. 4,500 4,958NANA NA $14.00 NA - $16.00$10.00 - $13.00

30223701 Freedom Freedom Drive Drive 4,158 4,771NA$400,000 NA $83.84$16.00 - $18.00 NA Pridemore Shopping Center 3210 Wilkinson Blvd. 4,000 NA NA $18.00 1610 Ashley Road (BiLo) 4,500 NA NA $14.00 - $16.00

2815 Rozzelles Ferry Road 2,700 NA NA $1.01 3022 Freedom Drive 4,158 NA NA $16.00 - $18.00 2753 Rozzelles Ferry Road 1,890 NA NA $11.11 3210 Wilkinson Blvd. 4,000 NA NA $18.00 3101 Freedom Drive 1,800 NA NA $16.67 Total2815 Sq. Ft. Rozzelles Available Ferry Road 173,111 2,700 NA NA $1.01 Source: Charlotte SiteIndex, 11-18-2014 2753 Rozzelles Ferry Road 1,890 NA NA $11.11

3101 Freedom Drive 1,800 NA NA $16.67 Total Sq. Ft. Available 173,111 Source: Charlotte SiteIndex, 11-18-2014

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 3131

30 Planning Cycle 1 – Data Immersion

CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

Retail Absorption Retail Absorption There has been little absorption of retail space in the study area within the past few years, with few Thereproposed has been projects. little absorption And yet, of the retail historical space in averagethe study capturearea within rate the is past 20.4% few withinyears, with the no northwest active proposed projects.submarket, And yet,the thestrongest historical of average the property capture ratetypes is 20.4%(compared within theto office northwest and submarket, industrial). the strongest However, of theit is propertyworth noting types (compared that West to Morehead office and industrial). in the FreeMoreWest However, it is areaworth includes noting that a Westgrowing Morehead list of in eating the and FreeMoreWestdrinking places. area As includes residential a growing and list office of eating space and drinking continues places. to As be residential built and and absorbed, office space this continues will only to be builtstrengthen and absorbed, this dynamic. this will only strengthen this dynamic.

Northwest - Historical Retail Market Analysis

2010 2011 2012 2013 2014 YTD Number of Buildings 30 30 30 30 30 Total Inventory (Sq. Ft.) 3,784,960 3,784,960 3,784,960 3,784,960 3,784,960 Completions 20,000 0 0 0 0 Net Absorption (63,216) (12,513) 111,148 48,446 (6,228) Submarket Capture Rate (% of Total Market) 61.5% -2.0% 29.9% 9.8% 3.2% Total Vacant (Sq. Ft.) 458,457 470,970 359,822 311,376 317,604 Vacancy Rate 12.1% 12.4% 9.5% 8.2% 8.4% Community Center 21.7% 26.1% 13.8% 13.8% 14.4% Neighborhood Center 22.3% 21.3% 22.3% 19.6% 20.5% Power Cener 6.4% 4.5% 2.2% 2.0% 1.3% Regional Center 0.0% 0.0% 0.0% 0.0% 0.0% Specialty Center 16.3% 16.4% 11.6% 3.3% 2.6% Average Rent $16.03 $16.14 $17.06 $16.79 $16.80 Community Center $6.62 $7.46 $9.33 $9.18 $9.18 Neighborhood Center $16.17 $15.78 $15.17 $14.64 $14.64 Power Cener $25.68 $25.68 $25.68 $25.68 $25.50 Regional Center N/A N/A N/A N/A N/A Specialty Center $13.21 $13.07 $12.89 $12.93 $13.54 Sq. Ft. Under Construction 0 0 0 0 0 Sq. Ft. Proposed 559,000 559,000 559,000 559,000 194,000 Source: The KARNES Report 2nd Quarter 2014, Rose & Associates

The two two dominant dominant categories categories that show that fairly show consistent fairly consistent gaps in each gaps of the in trade each areas of the defined trade include areas grocerydefined and sportinginclude goods/hobby/musical grocery and sporting instrument goods/hobby/musical stores. Other sectors instrument include automotive stores. andOther electronic sectors shopping include and non- storeautomotive retailers and(online electronic shopping), shopping which could and be a non-store factor in the retailers thrift and (online non-traditional shopping), retail whichcategories could as seen be alonga thefactor Freedom in the Drive thrift corridor. and non-traditional The opportunity along retail Freedom categories Drive as is toseen create along a destination the Freedom oriented Drive urban corridor. mixed use projectThe opportunity that will take along advantage Freedom of this Drivemajor corridoris to create and gateway a destination into the orientedCenter City. urban With exceptionalmixed use views project and its connectionthat will take to the advantage sports related of this assets major makes corridor this an exciting and gateway opportunity into for the a sports-themed Center City. entertainmentWith exceptional center, that incorporates retail, restaurants and an urban park – that can be a parking lot, hardscape park with basketball courts views and its connection to the sports related assets makes this an exciting opportunity for a or an urban market – similar to that seen in other southern cities. sports-themed entertainment center, that incorporates retail, restaurants and an urban park – that Withcan bethe a negative parking gaps lot, within hardscape the trade park areas with and basketball substantial courtsspace supply, or an there urban are market a few opportunities – similar to for that additional seen retailin other space southern in the study cities. area. This is not so much about filling a gap for existing demand, but re-creating it by repositioning vacant and obsolete space and in some cases, consolidating the retail supply within the study area. The failedWith Freedomthe negative Mall has gaps been within converted the totrade County areas offices and (the substantial Valerie Woodward space supply, Center) there and three are majora few centers, includingopportunities the former for Kmartadditional and A&P retail stores, space are invacant. the study These centersarea. This catered is not to automobile so much abouttraffic andfilling now offera gap for expansiveexisting demand,level parking but lots re-creating and underutilized it by repositioningland that are conducive vacant to and redevelopment obsolete space. and in some cases, consolidating the retail supply within the study area. The failed Freedom Mall has been converted to County offices (the Valerie C. Woodard Center) and three major centers, including the former Kmart 31 and A&P stores, are vacant. These centers catered to automobile traffic and now offer expansive level parking lots and underutilized land that are conducive to redevelopment.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 3232 Planning Cycle 1 – Data ImmersionCNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief Annual Retail Space DemandCNIP – Estimate Rozzelles - Ferry/WestMecklenburg Trade County Market Analysis Summary Brief Mecklenburg County New Basic Employees (per year) 2013 9,618 AnnualEconomic Retail Base Space Multiplier Demand Estimate - Mecklenburg County 1.88 Annual Retail Space Demand Estimate - Mecklenburg County MecklenburgNew Total Employees County New Basic Employees (per year) 2013 18,0829,618 Mecklenburg County New Basic Employees (per year) 2013 9,618 EconomicAverage Submarket Base Multiplier Capture Rate 20.4%1.88 Economic Base Multiplier 1.88 NewEstimated Total Capture Employees in CNIP 18,08211% New Total Employees 18,082 AverageNew Total Submarket Employees Capture in CNIP Rate (per year) 20.4%1,989 Average Submarket Capture Rate 20.4% EstimatedAverage # CaptureRetail Employees in CNIP 11.5% 11%228 Estimated Capture in CNIP 11% NewAverage Total Retail Employees Space per in CNIPEmployee (per year)(S.F.) 1,989324 New Total Employees in CNIP (per year) 1,989 AverageCNIP New # Retail Retail Employees Space Demand (S.F.) 11.5% 73,788228 Average # Retail Employees 11.5% 228 AverageCNIP Current Retail Retail Space Supply per Employee (S.F.) 173,111324 Average Retail Space per Employee (S.F.) 324 CNIP RetailNew Retail Gap Space Demand (S.F.) -99,32373,788 CNIP New Retail Space Demand (S.F.) 73,788 CNIP Current Retail Supply 173,111 CNIP Current Retail Supply 173,111 CNIP Retail Gap -99,323 RetailCNIP Gap Retail Opportunities Gap for CNIP - West Trade Street Trade Area -99,323

Retail Convenience: Destination: RetailIndustry Gap Group Opportunities for CNIPNAICS - West # Trade Street5 minute Trade driveArea NAICS # 10 minute drive AutomobileRetail Gap OpportunitiesDealers for CNIP - 4411West Trade Street$21,783,023 Trade Area 4412 $6,546,636 GroceryRetail Stores 4451 Convenience:$19,326,008 4451 $83,025,981Destination: Retail Convenience: Destination: Beer,Industry Wine Group & Liquor NAICS4453 # 5 minute$1,131,702 drive NAICS 4453 # 10 minute($6,856,005) drive ClothingAutomobileIndustry Stores Group Dealers NAICS44814411 # 5 minute$21,783,023$5,847,291 drive NAICS 44124481 # 10 ($55,713,631)minute$6,546,636 drive Automobile Dealers 4411 $21,783,023 4412 $6,546,636 GrocerySporting StoresGoods, Hobby 44514511 $19,326,008$2,742,890 44514511 $83,025,981$3,245,396 Grocery Stores 4451 $19,326,008 4451 $83,025,981 Beer,General Wine Merchandise & Liquor Stores 44534529 $35,356,594$1,131,702 45294453 $59,597,009($6,856,005) Beer, Wine & Liquor 4453 $1,131,702 4453 ($6,856,005) Source:Clothing Rose Stores Associates, STDB/ESRI - 20144481 Retail Profile $5,847,291 4481 ($55,713,631) Clothing Stores 4481 $5,847,291 4481 ($55,713,631) Sporting Goods, Hobby 4511 $2,742,890 4511 $3,245,396 Sporting Goods, Hobby 4511 $2,742,890 4511 $3,245,396 General Merchandise Stores 4529 $35,356,594 4529 $59,597,009 General Merchandise Stores 4529 $35,356,594 4529 $59,597,009 Source: Rose Associates, STDB/ESRI - 2014 Retail Profile Source: Rose Associates, STDB/ESRI - 2014 Retail Profile Retail Gap Opportunities for CNIP - Freedom Drive Trade Area

Retail Destination: Destination: RetailIndustry Gap Group Opportunities for CNIPNAICS - Freedom # Drive10 Trade minute Area drive NAICS # 20 minute drive AutomobileRetail Gap OpportunitiesDealers for CNIP - 4411Freedom Drive Trade$43,960,324 Area 4411 ($967,514,353) OtherRetail Motor Vehicle 4412 Destination:$4,806,971 4412 Destination:($7,753,227) Retail Destination: Destination: LawnIndustry & Garden Group Equip/Supply NAICS4442 # 10 minute$2,276,572 drive NAICS 4442 # 20 minute$14,291,741 drive GroceryAutomobileIndustry Stores Group Dealers NAICS44514411 # 10 minute$56,320,546$43,960,324 drive NAICS 44514411 # 20($967,514,353)$239,337,003 minute drive Automobile Dealers 4411 $43,960,324 4411 ($967,514,353) OtherSporting Motor Goods, Vehicle Hobby 44124511 $4,806,971$3,846,539 44124511 ($74,174,388)($7,753,227) Other Motor Vehicle CNIP – Rozzelles4412 Ferry/West Trade$4,806,971 Market Analysis 4412 Summary Brief ($7,753,227) LawnGeneral & GardenMerchandise Equip/Supply Stores 44424529 $65,766,977$2,276,572 45294442 $364,286,743$14,291,741 Lawn & Garden Equip/Supply 4442 $2,276,572 4442 $14,291,741 GroceryUsed Merchandise Stores Stores 44514533 $56,320,546($3,457,314) 44514533 $239,337,003$7,437,922 Grocery Stores 4451 $56,320,546 4451 $239,337,003 Source:Sporting Rose Goods, Associates, Hobby STDB/ESRI - 20144511 Retail Profile $3,846,539 4511 ($74,174,388) Sporting Goods, Hobby 4511 $3,846,539 4511 ($74,174,388) General Merchandise Stores 4529 $65,766,977 4529 $364,286,743 General Merchandise Stores 4529 $65,766,977 4529 $364,286,743 Used Merchandise Stores 4533 ($3,457,314) 4533 $7,437,922 UsedThere Merchandise are opportunities Stores for automotive4533, sports, clothing($3,457,314) and grocery uses,4533 albeit limited. There is$7,437,922 an opportunity for a Source: Rose Associates, STDB/ESRI - 2014 Retail Profile Source:small ne Roseighborhood Associates, grocery STDB/ESRI to fill -t 2014he un Retailderserved Profile market. This is most prominent in the West Trade corridor, where no quality fresh food options currently exist. Current demand is being met by discount/convenience stores. In addition to a traditional neighborhood grocery in the Five Points area, a cluster of sports themed shops with restaurants around a town center or urban park could be considered on Freedom Drive, fitting for a regional destination. Freedom Drive is a major destination thoroughfare connecting two major interstates to each other and to the Center City. Such a themed center with specialty retailers could separate and define a destination apart from the larger national chain stores prevalent along the Freedom Drive corridor in the past. This could be further enhanced with a flexible hardscape which would be used for parking and/or gathering space for outdoor markets, events or entertainment. This is also an opportunity to re-create a place that connects and incorporates the history and culture of the African American community that is dominant in this area – which should be celebrated. The redevelopment and repositioning of the existing retail throughout the study area will reinvigorate the void of up to 300,000 – 400,000 square feet of retail, restaurant and entertainment space that could be created over the next 5-10 years.

1.8 Land Use Demand - Housing 32 RozzellesThere is aFerry/West consistent Tradepattern Street of housing Charlotte, in this NC study • Rose area. & Associates The housing Southeast, stock is relativelyInc. old. Some of it has 3333 32 architectural and/or historic significance. The housing in this area is primarily composed of single family, detached homes. Rentals are common, and while the vacancy rate is higher than the county average, most of the NPAs are fairly close to that average. The values of the housing stock vary significantly; however, the rental rates occur within a fairly narrow range and, with one exception, are all below the county average.

To understand the character of the housing stock in the West Trade/ Rozzelles Ferry Road study area, data from the 2012 Charlotte-Mecklenburg Quality of Life study will serve as the base for the descriptive analysis. This roughly divides this study area into five zones: The Ashley Park and West Boulevard NPAs (124 and 361) are the southernmost part of the study area and are found between Wilkinson Boulevard and Freedom Drive; NPAs 51, 347, and 382 are the easternmost part of the area and are most impacted by being near Uptown Charlotte and Johnson C. Smith University; Enderly Park is a large neighborhood that makes up most of three NPAs (5, 6, and 293); NPAs 88 and 292 are generally found between Brookshire Highway and Tuckaseegee Road and are bordered on the northerly side by I-85; and, University Park and Washington Heights are located between Brookshire Highway and Beatties Ford Road.

33 Planning Cycle 1 – Data Immersion

1.8 Land Use Demand - Housing There is a consistent pattern of housing in this study area. The housing stock is relatively old. Some of it has architectural and/or historic significance. The housing in this area is primarily composed of single family, detached homes. Rentals are common, and while the vacancy rate is higher than the county average, most of the NPAs are fairly close to that average. The values of the housing stock vary significantly; however, the rental rates occur within a fairly narrow range and, with one exception, are all below the county average.

NPA Number 5 6 51 70 85 88 124 292 293 347 361 382 Wesley University Washington Ashley Park County NPA Name Enderly Park Enderly Park Heights Park Heights Lakewood & W. Blvd. Smallwood Enderly Park Seversville Ashley Park Biddleville Averages Average SF of Housing Stock 1,099 1,128 1,700 1,193 1,073 1,031 1,082 1,033 1,115 1,304 1,082 1,097 2,028 % Owner- Occupied SF Units 26.4% 36.3% 52.6% 67.0% 30.3% 53.8% 46.9% 30.4% 39.1% 46.2% 36.4% 38.3% 60.0% % SF Houses for Rent 60.7% 54.2% 27.5% 34.0% 58.8% 44.5% 39.8% 41.0% 52.7% 36.8% 58.0% 53.1% 19.0% % SF Houses Vacant 34.1% 21.8% 15.0% 6.4% 13.1% 13.5% 15.1% 12.7% 24.9% 13.8% 13.8% 15.1% 9.0% Average Property Value $64,945 $71,001 $198,859 $45,376 $43,687 $68,124 $73,792 $72,257 $73,638 $130,549 $76,565 $93,111 $196,906 Median Monthly Gross Rent $648 $764 $760 $1,048 $720 $623 $755 $580 $784 $648 $574 $586 $948 Source: 2012 Charlotte-Mecklenburg Quality of Life study

ThisThis study study area area is, for is, thefor mostthe most part, homogeneous.part, homogeneous. However, However, a few of the a NPASfew of consistently the NPAS do consistently better on the do measures beingbetter used on herethe measuresthan the others. being The used clear here outlier than is Wesley the others. Heights The (NPA clear 51). outlierOn the otheris Wesley end of Heights the spectrum, (NPA the 51). EnderlyOn the Park other neighborhood, end of the whichspectrum, makes the up mostEnderly of three Park NPAs neighborhood, (5, 6, and 361), which appears makes to have up the most most of needs. three AgeNPAs of Housing(5, 6, and Stock 361), appears to have the most needs. Most of the units were built immediately after World War II, as part of the post war housing boom to house returning veterans and the growing families (the baby boom). Historic Camp Greene is evidence of this period, and the Quality of Life data support this conclusion.  The average age of the housing in 3 of the 12 NPAS is in the 1940s.  Six of the NPAs have an average age in the 1950s.  Two of the NPAs have an average age in the 1960s.  The Smallwood NPA (292) has an average age of 1978.  Size of Single Family Housing Units The single family units are small. The Quality of Life Study provides the following data to illustrate this point:

 RozzellesThe Ferry/West average Trade square Street footage Charlotte, for NC 6 of • Rosethe 12 & Associates NPAs is between Southeast, 1,000 Inc. and 1,100. 3434  Four of the NPAs have an average square footage of between 1,100 and 1,200.  The Seversville NPA(347) has an average square footage of 1,304.  The Wesley Heights NPA (5) has an average square footage of 1,700.  The average for all of Mecklenburg County is 2.028 square feet.

Owner-Occupied, Rental and Vacant Housing Units The percentage of the single family housing that is owner occupied is quite low compared to the county average. For the county as a whole, 60% of the single family units are occupied by the owner of the property. The percentage of owner occupied units in eleven of the twelve NPAS in this study area is below the county average. The only NPA (75) above the county average is University Park (67%). The percentage of single family houses that are for rent is 19% for the county. None of the NPAS are anywhere close to this number with one having 60.7% of its single family units for rent. The county average for vacant units is 9.0%, and all of the NPAs, except University Park, in the study area are higher than the county average.

Housing Values 34 Planning Cycle 1 – Data Immersion

Age of Housing Stock Most of the units were built immediately after World War II, as part of the post war housing boom to house returning veterans and the growing families (the baby boom). Historic Camp Greene is evidence of this period, and the Quality of Life data support this conclusion. • The average age of the housing in 3 of the 12 NPAS is in the 1940s. • Six of the NPAs have an average age in the 1950s. • Two of the NPAs have an average age in the 1960s. • The Smallwood NPA (292) has an average age of 1978.

Size of Single Family Housing Units The single family units are small. The Quality of Life Study provides the following data to illustrate this point: • The average square footage for 6 of the 12 NPAs is between 1,000 and 1,100. • Four of the NPAs have an average square footage of between 1,100 and 1,200. • The Seversville NPA(347) has an average square footage of 1,304. • The Wesley Heights NPA (5) has an average square footage of 1,700. • The average for all of Mecklenburg County is 2.028 square feet.

Housing Values The Quality of Life study provides two data points that will be used to describe the value of the housing stock. One of these is the median gross rent and the other one in the appraised residential property values. The appraisal data are from the revaluation that has since been ruled inadequate, and the county is in the process of review. However, the corrective revaluation has not been completed; therefore, the most recent data available come from the earlier revaluation. While some values are likely to be changed in the redo, the ranges across the 12 NPAs in the subject study area are unlikely to have significant changes.

In terms of residential property values, seven of the twelve NPAs are between $64,945 and $76,565 per unit of housing. The five NPA outliers are Biddleville (382) at $93,111, Seversville (347) at $130,549, Wesley Heights (51) at $198,859, Washington Heights (85) at $43,687, and University Park (70) at $45,376. The county average on this indicator is $196,906.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 3535 CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

The Quality of Life study provides two data points that will be used to describe the value of the housing stock. One of these is the median gross rent and the other one in the appraised residential property values. The appraisal data are from the revaluation that has since been ruled inadequate, and the county is in the process of review. However, the corrective revaluation has not been completed; therefore, the most recent data available come from the earlier revaluation. While some values are likely to be changed in the redo, the ranges across the 12 NPAs in the subject study area are unlikely to have significant changes. Planning Cycle 1 – Data Immersion In terms of residential property values, seven of the twelve NPAs are between $64,945 and $76,565 per unit of housing. The five NPA outliers are Biddleville (382) at $93,111, Seversville (347) at $130,549, Wesley Heights (51) at $198,859, Washington Heights (85) at $43,687, and University Park (70) at $45,376. The county average on this indicator is $196,906.

TheThe median gross gross monthly monthly rent rent for for the the single single family family housing housing units units ranges ranges from $574 from per $574 month per month (NPA 361 (NPA – Ashley Park) 361to $1,048 – Ashley per Park)month to (NPA $1,048 70 per– University month (NPA Park). 70 Four – University of the NPAs Park). have Foura median of the gross NPAs rent have in the a median $574 to $599 range, grossthree rentin the in $600 the $574to $700 to $599range, range, and five three above in the $700. $600 to $700 range, and five above $700. Noell Consulting completed an Affordable Housing Needs Study for the planned Gold Line Stations in Noell Consulting completed an Affordable Housing Needs Study for the planned Gold Line Stations in July of 2014. The July of 2014. The findings for the entire station corridor suggest limited additional demand for findings for the entire station corridor suggest limited additional demand for housing for the western stations, which lie housing for the western stations which lie within the study area. within the study area.

Affordable Housing Unit Demand Gold Line Corridor Stations Type Current 2020 2035 Owner* 1,583 2,250 2,700 Renter 200 200 200 *Affordable at 60% AMI level and below Source: Noell Consulting Group, Estimated Affordable Housing Needs Around the Existing and Planned Gold Line Stations , July 2014

Type of Housing Type of Housing AlmostAlmost all of thethe housinghousing stock stock in inthis this study study area area is single is single family, family, detached. detached. The primary The primary exception exception is new multifamilyis newand singlemultifamily family housingand single that family has recently housing been that built has or recently is under beenconstruction built or inis theunder vicinity construction of the intersection in the of vicinityFreedom of Drive the intersectionand Morehead of Street.Freedom This Drive has expanded and Morehead housing Street. options This in thishas areaexpanded at market housing rates. Given the optionsdemographic in this and area lifestyle at market data, rates. additional Given apartments the demographic for rent andand condominiums/townhomes lifestyle data, additional apartments for sale should be forconsidered. rent and Thiscondominiums/townhomes includes both retirement and for workforce sale should housing be considered. that will cater This to includes Baby Boomers both retirement and Millennials alike. andFeatures workforce and amenities housing for that multi-generational will cater to Baby families Boomers would and provide Millennials for many alike. of Featuresthe West andend areaamenities residents to age in forplace, multi-generational as single family homes families are wouldsold, renovated provide forand many restored of the in the West historic end areaneighborhoods. residents to age in place, as single family homes are sold, renovated and restored in the historic neighborhoods. There are areas where additional housing will add diversity to the housing stock through development or There are areas where additional housing will add diversity to the housing stock through developmentredevelopment. or Thisredevelopment. would include This HUD’s would Choice include program, HUD’s providing Choice for program, both market providing rate and for affordable both housing marketoptions, rate and and local affordable partners such housing as the Charlotteoptions, and Housing local Authoritypartners andsuch Charlotte as the Charlotte Housing PartnershipHousing have strong track Authorityrecords for and providing Charlotte such Housing housing withinPartnership the city which in other have areas. strong Elderly track housing, records allowing for providing Baby Boomers such and Seniors to housingage in place within should the also city be in considered. other areas. Much Elderly of thehousing, housing allowing in the study Baby area Boomers meets theand requirements Seniors to age for in being placeaffordable should to alsomultiple be considered. income groups. Much Some of the specific housing recommendations in the study area might meets include: the requirements for being affordable to multiple income groups. Some specific recommendations might include: 35 • Wesley Heights is currently the only neighborhood in this study area that has been designated as a historical district. Other neighborhoods might pursue this designation to bring more control to the development and redevelopment process and to take advantage of any tax benefits that may accrue to these districts. It also enhances the reputation of those places that are designated as historical districts. Biddleville is a clear possibility for historical district designation. Seversville and parts of Enderly Park might also be considered. Lastly, Lakewood and University Park, one of the few black neighborhoods in the United States to be designated by the Federal Housing Administration for support after World War II, would also be a strong candidates for designation.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 3636 CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief

 Wesley Heights is currently the only neighborhood in this study area that has been designated as a historical district. Other neighborhoods might pursue this designation to bring more control to the development and redevelopment process and to take advantage of any tax benefits that may accrue to Planning Cycle 1 – Datathese Immersion districts. It also enhances the reputation of those places that are designated as historical districts. Biddleville is a clear possibility for historical district designation. Seversville and parts of Enderly Park might also be considered. Lastly, Lakewood and University Park, one of the few black neighborhoods in the United States to be designated by the Federal Housing Administration for support after World War II, would also be a strong candidates for designation. • As noted, theAs homesnoted, the are homes aging are and aging while and whilethe appearance the appearance of ofmuch much of of the the housing stock stock is good is good consideringconsidering its age and its itsage use and as its rentaluse as rentalproperties, properties, repairs repairs and and renovations renovations areare needed needed in inmany many of the of the units. Continuedunits. Continued Code Code Enforcement Enforcement and and programs programs such such as asa revolving a revolving loan fundloan might fund encourage might encourage ownersowners to to be be more more responsive responsive in maintaining in maintaining their housing their units. housing units. • Consider adaptiveConsider reuse adaptive of reuseolder of large older industrial/mill large industrial/mill buildings buildings in in and and around lower lower Freedom Freedom Drive, Drive, TuckaseegeeTuckaseegee and and Thrift Thrift Roads Roads for development development of lowof low income income elderly elderly housing, housing and connect and to connect to greenways,greenways, shopping shopping and transportation and transportation services. services. • Continue toContinue facilitate, to facilitate,support supportand partner and partner in HUD in HUD Choice Choice (formerly (formerly HopeHope VI) VI) mixed mixed income, income, mixed type mixed type housing developments, developments, particularly particularly in and aroundin and JCSU around and on JCSU Freedom and Drive,on Freedom specifically Drive, on the specificallyformer on the K-Mart former site, K-Mart as part ofsite, a revitalizationas part of a planrevitalization for a mixed-use plan urban for adevelopment. mixed-use Manyurban available development.sites Many along availableFreedom Drive sites and along Morehead Freedom offer Drive spectacular and Morehead views of the offer Center spectacular City, which would views add of value to the neighborhoods. the Center City, which would add value to the neighborhoods.

The success of housing in the study area is dependent upon two primary factors: transportation and education. Therefore, the proposed Gold Line and Trolley projects, as well as greenway and sidewalk infrastructure will have an impact on accessibility to goods and services. There are opportunities to stabilize, rehabilitate and preserve the existing single family housing stock – largely through public private initiatives and programs, including the expansion of historic districts. Increasing the stability of owner-occupied homes would improve property values, allow Baby Boomers and Seniors to age in place, and strengthen the commercial corridors. There are also opportunities to further diversify multifamily housing to match the needs and wants of today’s Millennials and aging Baby Boomers. These include the redevelopment of Tarleton Hills under a Choice Neighborhood Implementation program, the adaptive reuse of the Savona Mills project and development of vacant parcels or redevelopment of existing property along the Freedom Drive and Rozzelles Ferry corridors. Much of the housing gap will be filled with the housing proposed or under construction in the Bryant Park and West Trade areas. Together these will provide over 350 homes in the area to meet the gap of 700 – 1400 housing units over the next 5-10 years.

Planning Cycle 2 – General Framework

2.1 Land Use – Planning Framework

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 3737 Planning Cycle 2 – General Framework

2.1 Land Use – Planning Framework CNIP – Rozzelles Ferry/West Trade Market Analysis Summary Brief A review of the current land uses provides insight into the strengths of the West Trade/Rozzelles FerryA review study of thearea. current The predominant land uses provides use is insight single into family the strengthsdetached of homes, the West while Trade/Rozzelles industrial and Ferry vacant study area. The propertiespredominant offering use is single development family detached potential homes, also whiledominate industrial the landscape. and vacant propertiesOpen space offering and recreation development potential areas are abundant, but should be better connected to residents and other amenities or assets. Retail also dominate the landscape. Open space and recreation areas are abundant, but should be better connected to is the strongest asset class, though much of the existing inventory is obsolete and in need of residents and other amenities or assets. Retail is the strongest asset class, thought much of the existing inventory is revitalization/redevelopment. Taken together, this combination of uses has the potential to foster strongobsolete neighborhoods and in need of revitalization/redevelopment.with ample recreation, community Taken together, services thisand combination home ownership of uses has the potential to opportunities.foster strong neighborhoods It is important with to noteample here recreation, that existing community land useservices should and not home be ownershipconfused withopportunities. adopted It is landimportant use, which to note takes here intothat considerationexisting land use underutilized should not be land confused assets. with adopted land use, which takes into consideration underutilized land assets. West Trade/Rozzelles Ferry Existing Land Use Total Parcel Acreage % of Total Total Building Sq Ft % of Total Civic/Institutional 284.17 11.2% 2,288,641 13.6% Horizontal Mixed Use Non-Residential 63.83 2.5% 710,704 4.2% Industrial 91.61 3.6% 904,334 5.4% Multi-Family 85.09 3.4% 1,587,023 9.5% Office 53.45 2.1% 813,413 4.9% Open Space/Recreation 263.49 10.4% 35,030 0.2% Parking 1.55 0.1% 0 0.0% Retail 197.60 7.8% 1,700,216 10.1% Single Family - Attached 109.47 4.3% 870,960 5.2% Single Family - Detached 754.37 29.7% 4,732,701 28.2% Transportation 8.46 0.3% 31,401 0.2% Utility 64.98 2.6% 11,392 0.1% NET Vacant 375.80 14.8% 62,059 0.4% Vertical Mixed Use 0.25 0.0% 4,673 0.0% Warehouse/Distribution 182.94 7.2% 3,015,932 18.0% Totals 2,537.06 100% 16,768,479 100% [StantecSource: City – ofche Charlotteck this chart against GIS – see email to Matt with Excel Demand Analysis File]

2.2 Issues and Opportunities 2.2 Issues and Opportunities The West Trade/Rozzelles Ferry study area points to opportunities for revitalization and Theredevelopment. West Trade/Rozzelles To invest Ferry in meaningfulstudy area points projects to opportunities that will create for momentumrevitalization and redevelopment.implement To invest in meaningfultransformational projects change, that will acreate vision, momentum plan and investmentand implement will transformational need to be corroborated change, a andvision, agreed plan and investment willupon need by to the be city corroborated leaders, community and agreed uponstakeholders by the city and leaders, property community owners. stakeholders Our analysis and focuses property on owners. Our analysisCIP projects focuses based on CIP on projects the following based on goals: the following improved goals: connectivity improved toconnectivity strengthen to commercial strengthen commercial corridors, corridors, increased educational and employment opportunities to strengthen housing, and increased educational and employment opportunities to strengthen housing, and entrepreneurial and small business entrepreneurial and small business opportunities to improve private investment. opportunities to improve private investment.

The identified assets, issues and opportunities must be linked together to weave a tapestry that considers the unique characteristics of the study area, bound together by the threads of infrastructure investment.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 3838

Planning Cycle 2 – General Framework

The identified assets,CNIP issues – Rozzellesand opportunities Ferry/West must Trade be linked Market together Analysis to Summary weave a tapestryBrief that considers the unique characteristics of the study area, bound together by the threads of [Stantecinfrastructure – apply the investment. boxes below over map images]

Issues: Opportunities: • Goodwill Relocation • Industrial – adaptive reuse • Vacant Land/Underutilized Property • Housing – expansion of choice • Low education attainment • Education & Small Business • Housing Choices • Historical/Cultural connections

• Environmental-Industrial • Sports/Entertainment connections Gentrification Transportation/Mobility connections • • • Barriers • Clustering to create synergy – Physical (interstates) • Reposition West Trade Street corridor – Social (education/job skills) • Reposition Freedom Drive corridor • Expand success of Wesley Heights • Expand success of West Morehead

2.3 Key Themes

Based upon review of the data, five key themes have emerged for redevelopment and project planning: 2.3 Key Themes 1) Education – connecting these assets physically and through program partnerships would improve local workforce training and employment opportunities for residents within the study area. The resulting economic impact would contribute to more stable housing and strengthen economic mobility to support retail. Key assets include Johnson C. Smith University and Central Piedmont Community College. 2) Connectivity – connecting the various modes of transportation and interconnectivity between assets, including greenways and parks, with the center city will improve linkages and assist in improving economic performance. 3) Arts & Culture – integrating (what remains of) the African American cultural assets of the study area into a retail, entertainment and tourism strategy will drive demand, improve occupancy and create additional tax base to contribute to the economic stability and mobility of the area. Based upon review4) ofE- conomythe data, – fiveas part key of themes an education have strategy,emerged programsfor redevelopment to assist with and small project business and planning: entrepreneurship will enable more local residents to either find a job or create their own through entrepreneurship. This also includes creating opportunities, such as façade 1. Education – connecting these assets physically and through program partnerships would improve local workforceimprovement training grants and and employment other tools to opportunities assist growing for new residents local businesses within the. study area. The resulting economic impact would contribute to more stable housing and strengthen economic mobility to support retail. Key assets include Johnson C. Smith University and Central Piedmont Community College. 2. Connectivity – connecting the various modes of transportation and interconnectivity between assets, including greenways and parks, with the center city will improve linkages and assist in improving economic performance.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 3939

Planning Cycle 2 – General Framework

3. Arts & Culture – integrating (what remains of) the African American cultural assets of the study area into a retail, entertainment and tourism strategy will drive demand, improve occupancy and create additional tax base to contribute to the economic stability and mobility of the area.

4. E-conomy – as part of an education strategy, programs to assist with small business and entrepreneurship will enable more local residents to either find a job or create their own through entrepreneurship. This also includes creating opportunities, such as façade improvement grants and other tools to assist growing new local businesses.

5. Multi-generational – addressing the multi-generational needs of the local families includes a housing strategy that allows for older populations to age in place, and opportunities to add more diversity of housing stock that could impact densities, which would also strengthen the retail sector.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 4040 Planning Cycle 3 – Inviting Success • Development Impact Analysis • Community Investment Strategy

3.1 Economic Mobility: Healthy E-Conomy = Healthy Community (Quality of Life)

A key component of community health and wellness is economic opportunity. This is the result of the economic multiplier of three key factors: education, opportunity, and financial security. People with financial security contribute to, and support, their community. Education and occupational opportunity are two main drivers to increase the chances for financial security. E-Conomy refers to opportunities for both residents and businesses in providing education, job training or entrepreneurial support for creative and inspired individuals to create their own occupation or small business.

The West End contains valuable resources, both physically and structurally with untapped educational and partnership opportunities that can be leveraged to raise the level of attained education, create entrepreneurial experiences and support the financial health for the people in this community.

Rozzelles Ferry/West Trade Street Charlotte, NC • Rose & Associates Southeast, Inc. 4141